note 002 Double Entry SystemTrial Balance Financial account 财务会计 教学课件.ppt

Analyzing and Recording Process Exchanges of economic consideration between two parties. Analyzing and Recording Process The Account and its Analysis Asset Accounts Liability Accounts Equity Accounts The Account and its Analysis Debits and Credits Double-Entry Accounting Double-Entry Accounting Double-Entry Accounting An account balance is the difference between the increases and decreases in an account. Journalizing and Posting Transactions Journalizing Transactions Balance Column Account Posting Journal Entries Posting Journal Entries Posting Journal Entries Posting Journal Entries Posting Journal Entries Posting Journal Entries Analyzing Transactions – An Illustration Analyzing Transactions – An Illustration Analyzing Transactions – An Illustration Analyzing Transactions – An Illustration Analyzing Transactions – An Illustration Searching for and Correcting Errors Errors affecting Trial Balance Errors not affecting Trial Balance Using a Trial Balance to Prepare Financial Statements Income Statement Statement of Owner’s Equity Balance Sheet Liana Mohamad FA1 Topic 2 Double Entry System Trial Balance External Transactions occur between the organization and an outside party. Internal Transactions occur within the organization. Analyze each transaction and event form source documents Record relevant transactions and events in a journal Post journal information to ledger accounts Prepare and analyze the trial balance LiabilitiesAccounts EquityAccounts AssetsAccounts = + Land Equipment Buildings Cash Notes Receivable Supplies Prepaid Accounts Accounts Receivable AssetAccounts Accrued Liabilities Unearned Revenues Notes Payable Accounts Payable LiabilityAccounts EquityAccounts Revenues Owner’s Capital Owner’s Withdrawals Expenses Liabilities Equity Assets = + Owner’s Capital Owner’s Withdrawals Revenues Expenses + + – – A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions. Liabilities Equity Assets =