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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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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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 October 14th, 2022 by Michael Brown
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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 November 8th, 2019 by Michael Brown
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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 8th, 2019 by Michael Brown
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Accrual to Cash Conversion

The accruals and cash basis of accounting are two different methods of preparing financial statements. A business can calculate information relating to cash receipts and payments from it’s accrual based accounting system using accrual to cash conversion formulas.

Last modified January 13th, 2020 by Michael Brown
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Cash to Accrual Conversion

The cash and accruals basis of accounting are two different methods of preparing financial statements. The conversion from cash basis to accrual basis can be carried out using cash to accrual conversion formulas.

Last modified November 11th, 2019 by Michael Brown
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Royalties in Accounting

Royalty accounts are used to record royalties paid by a licensee to a licensor for the use of a long term asset owned by the licensor.

Last modified August 3rd, 2020 by Michael Brown
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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.

Last modified December 17th, 2019 by Michael Brown
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Accounts Payable Internal Controls

Internal controls for accounts payable are used to reduce the risk of fraud and error in the accounts payable process. The purpose of the internal controls is to ensure that only valid supplier invoices are paid.

Last modified November 12th, 2019 by Michael Brown
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Accounting Internal Controls

Internal controls in accounting are used to reduce the risk of fraud and error in the bookkeeping and accounting system. The level of internal controls used will depend on the nature and size of the business involved.

Last modified December 17th, 2019 by Michael Brown
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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.

Last modified December 9th, 2019 by Michael Brown
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