Accounting Journal Basics

A book where accounting entries for all transactions are initially recorded before being transferred to the ledger.

A type of journal used to record general transactions.

The order in which transactions are recorded in the journal - from oldest to newest.

A record of financial transactions that cause an increase in assets or a decrease in liabilities.

A record of financial transactions that cause a decrease in assets or an increase in liabilities.

Each transaction has at least one debit and one credit amount, reflecting an increase in one account and a decrease in another.

The process of recording accounting entries in the journal, ensuring every transaction is documented chronologically.

It's like a first draft of the financial story, capturing all the transactions before they're officially recorded in the ledger.

Accounting entries are transferred to the ledger accounts after being initially recorded in the journal.

The day a transaction occurred, recorded in a journal.

The name of the account that receives a debit in a journal entry. Examples include Cash, Accounts Receivable, and Supplies.

The amount of the debit in a journal entry.

The name of the account that receives a credit in a journal entry. Examples include Accounts Payable, Salaries Payable, and Revenue.

The amount of the credit in a journal entry.

A brief description that explains each entry in a journal and typically includes a source document reference number.

The initial journal entry that sets up the accounting records at the start of a business.

The total debits in a journal entry must always equal the total credits. This ensures the accounting equation stays balanced.

A computerized system used by businesses to process transactions, like sales and payments, electronically.

A business document that lists the details of a sale made on credit, including items, prices, and total amount due.

The accounting process of recording financial transactions in a journal, which is a chronological record.

A journal entry that reflects a sale where the customer paid cash immediately.

A journal entry that reflects a sale on credit, where the customer owes the business money.

A business paper that shows the details of a transaction and provides all the information needed to account for it properly.

A cash sales slip is a business form showing the details of a transaction in which goods or services are sold to a customer for cash.

A cash sales slip must contain all the key details of the transaction. It includes information about the item description, quantity, price, and total.

Cash sales slips are pre-numbered, which helps businesses track and account for all slips. This is an important control technique to prevent lost or duplicate slips.

A copy of the cash sales slip is kept by the business for their records, while the original is given to the customer. This ensures they have proof of purchase.

A report generated by a point of sale terminal that provides detailed information about each transaction, including customer name and card number.

A business document used to record the purchase of goods or services from a supplier, distinguishing it from the purchaser's own sales invoices.

A bank document informing a business about a decrease in their account balance.

A bank document informing a business about an increase in their account balance.

A document that records a sales transaction, showing the total amount received from a customer.

A document that records a sale of goods or services on credit, meaning the customer will pay later.

A document that supports an accounting entry for a payment made by cheque. It typically shows the payee, amount, and date of payment.

The debit side of a journal entry for a cheque copy depends on the transaction's nature. The credit side always goes to 'Bank'.

A business document that lists all the money received from customers on a particular day. It includes the customer names, amounts paid, and the purpose of the payment.

The cash receipts daily summary is the original source document for the accounting entries related to cash receipts.

Each entry in the Cash Receipts Daily Summary shows the customer's name, the amount paid, and the reason for the payment. This helps to analyze and track cash inflows.