Accounting Education is Mayowa Adebanjo's initiative borne out of passion to educate high school students, upcoming teachers and small business owners .
How to prepare bank reconciliation statements. How to do bank reconciliation.
Did you know that "Luca Pacioli" is the father of accounting?!...
Amazing fact...
16/07/2020
3 most important thing you should know about trial balance!!
1. Meaning of trial balance: it is a schedule or list that shows the debit and credit balances derived from ledger, to show the arithmetical accuracy of the ledgers.
2. Uses of trial balance:
A. The trial balance helps in testing the accuracy of the double entry.
B. Helps in preparation of financial statements.
3. Rules of trial balance:
i. All assets must be put on the debit side
ii. All income or gain must be recorded on the credit side.
iii. All expenses must be recorded on the debit side
iv. All liabilities must be on the credit side.
Note: In the preparation of the trial balance, all the ledger accounts must be prepared and the balance extracted and entered in the trial balance.
09/07/2020
Every Accountants should know this significant documents;
1. Invoice: this document set out full details of goods sent by the suppliers to the buyer stating the quantity, price, discount given and terms of payment.
2. Debit note: this is a document sent by the seller to the buyer to correct an undercharge, overcharge or when goods are not charged on the invoice.
3. Credit note: this is a document sent by the customers for reduction in the amount owed by him. Due to to issues like damages or ordered.
4. Statement of account: this is the document sent by the seller to the buyer at a regular interval , usually showing credits and debits to the account and balance due.
5. Receipt: this is the document given by the seller to the customer as an evidence of payment for goods.
6. Petty cash voucher: this covers payment credited to the petty cash book.
02/07/2020
Steps you must follow when recording credit transactions:
1. Prepare day books; sales, purchases, returns and journal proper.
2. Prepare two accounts
3. Identify the "giving account" and the "receiving account"( apply principle of double entry):
Credit Giver
Debit Receiver
3 simple steps in recording transactions;
1. Prepare double (two) accounts,
2. Identify the "giving account" and the "receiving account",
3. Then apply the Credit Giver and Debit Receiver principle.
NOTE: ALL CASH TRANSACTIONS MUST PASS THROUGH THE CASHBOOK.
What is the process of transferring the debits and credits from the journal entries to the accounts called?
A. Posting
B. Itemizing
C. Rationalizing
Which account is the most simplest for you to handle?
Who are the users of accounting information?
Mention 5 of them.......
24/06/2020
5 things bookkeeping will do to your business
Marine Corps paid off $3000 of its account payable. What is the effect on its liabilities?
A. Increased by $3000
B. Decreased by $3000
C. No change
Capules corporation buys a machinery for $70000. What is the journal entry?
A. Debit machinery: Credit Cash
B. Credit machinery: Debit cash
C. Debit cash: Credit machinery