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.
Tag: Bookkeeping
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.
Normal Balance of Accounts
Unbalanced Trial Balance Errors
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.
Accrual to Cash Conversion
Cash to Accrual Conversion
Royalties in Accounting
Internal Control Procedures for Accounts Receivable
Internal controls for accounts receivable are used to reduce the risk of fraud and error in the accounts receivable process. The purpose of the accounts receivable internal control checklist is to ensure that valid sales invoices are properly recorded and that customers pay promptly.
Accounts Payable Internal Controls
Accounting Internal Controls
Accounts Payable Control Account
The accounts payable control account is an account in the general ledger which maintains summary postings relating to accounts payables. The account, which is sometimes referred to as the purchases ledger control account, is used to allow the detail of supplier transactions to be kept in a separate subsidiary personal account ledger which is not part of the double entry bookkeeping system.