Bookkeeping
Bookkeeping
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At the end of the lesson, students should be able to:
1. define bookkeeping;
2. explain the tasks and responsibilities of
bookkeepers;
3. visualize the different books of accounts.
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Bookkeeping is the recording of financial transactions
and is part of the process of accounting in
business. It refers mainly to the record-keeping
aspects of financial accounting, and involves
preparing source documents for all transactions,
operations, and other events of a business. It involves
the recording, daily, of a company’s financial
transactions
Transactions include purchases, sales, receipts and
payments by an individual person or an organization or a
corporation. 10
Bookkeeper records the day-to-
day financial transactions of a
business such as sales,
purchases, receipts, and
payments.
Bookkeepers are individuals who
manage all financial data for
companies. 11
a. Maintaining records of financial transactions
b. Writing and posting journal entries to cash
receipt book, cash disbursement book and
ledger accounts
c. Preparing trial balance
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Bookkeepers focus on recording
financial transactions while
Accountants, on the other hand, are
tasked with interpreting financial
information rather than gathering the
information.
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Bookkeeping is a direct record of
all purchases and sales the
business conducts, while
accounting is a subjective look at
what that data means for the
business.
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The world of accounting is run
by credits and debits.
Three main Rules of Accounting
1. Debit the receiver and credit the giver
2. Debit what comes in and credit what goes out
3. Debit expenses and losses, credit income and
gains
A debit is an entry made on the left side of an
account. Debits increase an asset or expense account or
decrease equity, liability, or revenue accounts.
Debit Credit
Machinery - Fixed Assets 15,000
Accounts Payable 15,000
1. Journal
2. Cash Receipt
3. Cash Disbursement
4. Ledger
A Journal entry is used to record a business transaction
in the accounting records of a business. It contains
explanation of financial transaction.
example
A Cash Receipts Journal is referred to as the main entry book used in an
accounting system to keep track of the sales of items when cash is
received, by crediting sales and debiting cash and transactions related to
receipts.
Debit Credit
Machinery - Fixed Assets 15,000
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Video
Presentation
https://www.youtube.com/watch
?v=NVR-lBrNe8M (5.48 mins)
Company’s receipt/invoice)
(must be supported by
receipt /proof of payment)