Voucher System in Accounting

The voucher system in accounting is a method of controlling payments made by a business. The system ensures only authorized payments are made and can be used for both goods and services purchased either on account or for cash.

Last modified January 28th, 2022 by Michael Brown
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3 Column Ledger Accounts

The 3 column ledger account adds a third column to the standard T account used in bookkeeping, in order that a running balance can be maintained on the account. The three columns are debit, credit and balance.

Last modified May 15th, 2020 by Michael Brown
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Different Types of Accounting

Accounting is a set of concepts and methods used to measure and report financial information about a business. Financial accounting and management accounting are different types of accounting used by accountants to present the information in alternative forms for different purposes.

Last modified October 31st, 2022 by Michael Brown
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Posting in Accounting

The business updates the ledger by copying each of the entries in the books of prime entry to the appropriate account in the ledger. This updating process is referred to as posting the general ledger.

Last modified January 15th, 2020 by Michael Brown
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Types of Accounts in Accounting

The double entry bookkeeping system categorizes accounts into personal and impersonal accounts. Impersonal accounts are then further divided into real accounts and nominal accounts. The purpose of using these types of accounts in accounting is to simplify the bookkeeping system.

Last modified November 14th, 2022 by Michael Brown
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General Ledger Accounting

The general ledger is the central ledger in the double entry bookkeeping system. It includes all the accounts a business lists in its chart of accounts and records accounting transactions by account and then date order. A trial balance can be extracted from the general ledger which forms the basis for the production of the financial statements.

Last modified September 23rd, 2022 by Michael Brown
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Opening Entry In Accounting

An opening journal entry is used to post the opening assets, liabilities, and equity of a business when it first establishes a double entry bookkeeping system.

Last modified July 16th, 2019 by Michael Brown
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Branch Accounting System

Branch accounting is used by a business to assess the profitability of each of its branches. The simplest method is for the central head office to operate a single branch account for each branch. The method is sometimes referred to as the debtors system or direct method system.

Last modified February 9th, 2023 by Michael Brown
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Self Balancing Accounts System

As the number of bookkeeping transactions increases an accounting ledger needs to be split into various subsidiary ledgers. Self balancing ledger accounting is a method of entering two sided transactions in each ledger using adjustment accounts in order that a trial balance can be extracted from each of the subsidiary ledgers.

Last modified July 16th, 2019 by Michael Brown
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Departmental Accounting System

Departmental accounting is used by a business to assess the profitability of each of its departments using either the gross profit, contribution, or net profit method.

Last modified July 24th, 2019 by Michael Brown
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Sales Return Day Book

The sales return day book is used to record goods returned by customers. The sales return book is not part of the double entry posting and is simply a chronological list of credit notes issued to customers and used to post the accounts receivable and general ledgers.

Last modified August 22nd, 2019 by Michael Brown
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Purchases Returns Day Book

The purchase return day book is used to record goods returned to suppliers. The purchase return book is not part of the double entry posting and is simply a chronological list of supplier credit notes used to post the accounts payable and general ledgers.

Last modified August 22nd, 2019 by Michael Brown
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