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 October 31st, 2018 by Team
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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 31st, 2018 by Team
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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 4th, 2018 by Team
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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 June 23rd, 2018 by Team
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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 June 5th, 2018 by Team
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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.

Last modified June 5th, 2018 by Team
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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.

Last modified December 7th, 2017 by Team
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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.

Last modified November 17th, 2017 by Team
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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.

Last modified October 6th, 2017 by Team
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