Should business transactions credits and debits be recorded directly into the ledger accounts? What are the...
Should business transactions credits and debits be recorded directly into the ledger accounts?
What are the advantages of recording in the journal before posting transactions into the ledger?
Homework Answers
No the transaction should not be directly entered in ledger.it should be included in journal first.
Benefits of journal are as follows-
(i) Chronological Record: Journal book records transactions as and when it happens. Therefore it is possible to get day-to-day information.
(ii) Minimizing the possibility of errors: The nature of the transaction and its effect on the financial position of the business is ascertained by recording and analyzing into debit and credit aspect.
(iii) Narration: It means the explanation of every recorded transaction.
(iv) Helps to finalize the accounts: It is the basis of ledger posting and the ultimate Trial Balance.
Add Answer to:
Should business transactions credits and debits be recorded
directly into the ledger accounts?
What are the...
Accounts Payable Subsidiary Ledger The debits and credits from two transactions are presented in the following...
Accounts Payable Subsidiary Ledger The debits and credits from two transactions are presented in the following creditor's (supplier's) account: NAME Hellman Services Inc. ADDRESS 2199 Commerce Place Date Item Post. Ref. Debit Credit Balance Nov. 1 Balance 571 Nov. 11 Invoice No. 336 P105 206 777 Nov. 22 Invoice No. 360 CP50 106 671 Select the choice that describes each transaction and the source of each posting. Date Action Invoice No. Posted From Journal Page Nov. 11 Nov. 22
Analyzing and Recording Transactions accounting system, Do debits represent positive numbers, and Debits and Credits are...
Analyzing and Recording Transactions accounting system, Do debits represent positive numbers, and Debits and Credits are the foundation for recording tr credits negative? Why?f we record each transaction that occurs in the journal, why do we need to post each of them to the ledger? What is the significance of the ledger? Reply
When recording transactions in the T-accounts, the debits should equal the credits: Multiple Choice Ο Sometimes...
When recording transactions in the T-accounts, the debits should equal the credits: Multiple Choice Ο Sometimes Ο Ο Never Ο Only for asset accounts
The ledger is: A.a tool used to ensure that debits equal credits. B.a group of accounts...
The ledger is: A.a tool used to ensure that debits equal credits. B.a group of accounts that records results from business transactions. C.a tool used to ensure that all accounts have normal balances. D.a chronological record of the day's transactions.
Post the general journal entries from the journal to the corresponding general ledger accounts, paying particular attention to whether they’re debits or credits. Use the Post Ref. column to ensure t...
Post the general journal entries from the journal to the
corresponding general ledger accounts, paying particular attention
to whether they’re debits or credits. Use the Post Ref. column to
ensure that each line item of the journal entries is posted
correctly to each general ledger account. Posting from the journal
to the general ledger is simply rearranging the information.
J & LAccounting, Inc Post-Closing Trial Balance December 31, 2017 BALANCE DEBIT ACCOUNT TITLE CREDIT Cash, Business Checking Accounts Receivable Prepaid...
What are the advantages of first recording transactions in the journal and then posting to the ledger? T T T Anal (...
What are the advantages of first recording transactions in the journal and then posting to the ledger? T T T Anal (12nTIFF
Question 1 A chart of accounts is used in organizations to process transactions to the ledger....
Question 1 A chart of accounts is used in organizations to process transactions to the ledger. ensure consistency in recording transactions quicker, since a chart of accounts is essentially shorthand of accounts. verify correct amounts before being transferred to the trial balance. alphabetize accounts so that when accountants prepare financial statements the accounts can be quickly transferred. encrypt the general journal so that no other organization can read any other organization's journal. 1 points Question 2 The entry to close...
A chart of accounts: is where transactions are initially recorded. is where transactions are posted to...
A chart of accounts: is where transactions are initially recorded. is where transactions are posted to after they are initially recorded. serves as an index to the ledger, with each account numbered to facilitate frequent references that are made to it. is the same as a T-account, with debits on the left and credits on the right.
jeneral ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits...
jeneral ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 25,400 16,200 13,600 156,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 7.500 6,600 151,000 46,100 $211,200 $211,200 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, 5142,100, and on account, $56,200. 2. February 12 Collect on accounts receivable, $52,300. 3. April 25 Receive...
Module 1: Chapter 2: Review Questions Assignment 1. Provide the names of two (a) asset accounts,...
Module 1: Chapter 2: Review Questions Assignment 1. Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts. 2. What is the difference between a note payable and an account payable? 3. List the steps in processing business transactions. 4. What kinds of transactions can be recorded in the general journal? 5. Are debits or credits typically listed in general journal entries? Are the debits or credits indented? 6. Should a transaction be recorded first...
Accounts Payable Subsidiary Ledger The debits and credits from two transactions are presented in the following creditor's (supplier's) account: NAME Hellman Services Inc. ADDRESS 2199 Commerce Place Date Item Post. Ref. Debit Credit Balance Nov. 1 Balance 571 Nov. 11 Invoice No. 336 P105 206 777 Nov. 22 Invoice No. 360 CP50 106 671 Select the choice that describes each transaction and the source of each posting. Date Action Invoice No. Posted From Journal Page Nov. 11 Nov. 22
Analyzing and Recording Transactions accounting system, Do debits represent positive numbers, and Debits and Credits are the foundation for recording tr credits negative? Why?f we record each transaction that occurs in the journal, why do we need to post each of them to the ledger? What is the significance of the ledger? Reply
When recording transactions in the T-accounts, the debits should equal the credits: Multiple Choice Ο Sometimes Ο Ο Never Ο Only for asset accounts
Post the general journal entries from the journal to the
corresponding general ledger accounts, paying particular attention
to whether they’re debits or credits. Use the Post Ref. column to
ensure that each line item of the journal entries is posted
correctly to each general ledger account. Posting from the journal
to the general ledger is simply rearranging the information.
J & LAccounting, Inc Post-Closing Trial Balance December 31, 2017 BALANCE DEBIT ACCOUNT TITLE CREDIT Cash, Business Checking Accounts Receivable Prepaid...
What are the advantages of first recording transactions in the journal and then posting to the ledger? T T T Anal (12nTIFF
jeneral ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 25,400 16,200 13,600 156,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 7.500 6,600 151,000 46,100 $211,200 $211,200 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, 5142,100, and on account, $56,200. 2. February 12 Collect on accounts receivable, $52,300. 3. April 25 Receive...
Module 1: Chapter 2: Review Questions Assignment 1. Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts. 2. What is the difference between a note payable and an account payable? 3. List the steps in processing business transactions. 4. What kinds of transactions can be recorded in the general journal? 5. Are debits or credits typically listed in general journal entries? Are the debits or credits indented? 6. Should a transaction be recorded first...
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