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.

Branch Accounting System October 4th, 2018Team
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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.

Self Balancing Accounts System July 31st, 2018Team
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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.

Departmental Accounting System July 4th, 2018Team
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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.

Sales Return Day Book June 23rd, 2018Team
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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.

Purchases Returns Day Book June 5th, 2018Team
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Normal Balance of Accounts

In double entry bookkeeping each account has a normal balance. The normal balance for items on the left hand side of the equation is a debit and the normal balance for items on the right hand side of the equation is a credit.

Normal Balance of Accounts June 5th, 2018Team
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Unbalanced Trial Balance Errors

A trial balance will not balance if there are errors in the double entry bookkeeping system, To help find and correct the unbalanced trial balance a number of different shortcut techniques can be applied.

Unbalanced Trial Balance Errors December 7th, 2017Team
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Bank Transaction Journal Entries

The bank transaction journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of banking transactions. In each case the journal entries show the debit and credit account together with a brief narrative.

Bank Transaction Journal Entries November 17th, 2017Team
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Currency Forward Contract – Imports

When a business undertakes import trade with overseas suppliers and makes payment in a foreign currency it needs to try and protect itself from fluctuations in the currency exchange rate. One method of achieving this is to buy the foreign currency using a currency forward contract.

Currency Forward Contract – Imports October 6th, 2017Team
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Foreign Exchange Forward Contract Accounting

When a business undertakes export trade with overseas customers and receives payment in a foreign currency it needs to try and protect itself from fluctuations in the exchange rate. One method of achieving this is to sell the foreign currency using a foreign exchange forward contract.

Foreign Exchange Forward Contract Accounting October 5th, 2017Team
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