Analyzing and recording business transaction - Pengantar akuntansi pertemuan 2 (Bapak Putu Sudana)

There are 3 basic procedurs in manual accounting system ,you should remember until the end of your life :

1.) Analyzing
2.) Recording
3.) Summarizing

this 3 point should we do on the effects of transaction on entity, in order to make decision making in your bussines or your company .

1.) Analyzing , this is how about you read than choose somethings . You should determine the transactions is that transactions have entity or realtion to your bussiness or not . If that transactions have a entity or relation to your bussines / company you should recorded it .

So First we should know about transactions. transactions is some of activity that make impact to your assets specialy your finnance .
There are 2 type of transactions :

1.) External transaction
External transaction that is transactions that happens bettwen our company to the other things outside our company that can be the other company , bank , the distributor , or the supplier and something kinda like that . Just remember this transactions happnes bettwen our company and the other things outside our company .

2.) Internal transaction
Internal transaction that is transactions that happens inside our company without make any relations with the other company outside ourcompany. For the example about sallaries for our employee , elimination of debt borne by a sector business of an enterprise and the others else .

This is the transactions evidence and my reference in indonesian language / bahasa : http://definisipengertian.net/pengertian-transaksi-definisi-bukti-transaksi-jenis/

Things you should remember is , Non-transaction events are not affecting the financial statements. So althought that is very important we cant recorded it into the accounting system.

2.) Recording

When we want to do recording, we should know about accounting cycle :

I Take this pic from Mr. Putu sudana powerpoint

During each of period , we should make sure all the things specially transactions are properly recorded . We should make sure that record can ensure that the financial statement can be prepared at the end of accounting period .

There are Evolution of transactions recording you should know here :

First Using accounting equation format
Second Directly recorded to ledger
Third Using journal and posted to ledger

Know before we make ledger , T account , journal and the else . We should find out the most important things in accounting system that is account.

As we known accounting system are designed to show the increase or decrease in each financial statement item in a seperate record. This "record" can we call as account.

A group of accounts for a bussiness entity is called a ledger
A list of the accounts in the ledger is called a chart of accounts .

we will talk about ledger in the next meeting , just keep that name in your head . LOL

after you know about account , now you should know the characteristics of the account itself.
First is about potition , where you should record your financial statement . There are 2 side :

1. Left side can we call debits
2. Right side can we call credits

this is the rule about debits and credits (u should remember this one until the end of your life)