Analyzing and recording business transaction - Pengantar akuntansi pertemuan 3 (Bapak Putu Sudana)

Yeseterday we have learned about the transaction, debit and credit . Now we will continue our discussion . We will learn about Analyzing and summarizing transaction .

There are several question you need to know before we continue .

First we should know , is the event classified as business transaction ?
Second we should know , Which accounts affected by the transaction ?
Third we should know , What is effect of transactions to each account ? increase or decrease ?
Fourth we should know , Where we gonna put that account ? we gonna put it in debit side or in credit side ?

Than after we answer all of that question we should do record business.

When you recording business transaction you should know about , assets, liabilites, equity , that are affected . You should remember every business transaction affects at least two accounts that usually we call it as Double entry accounting.

This is our step to record business :

We will talk about the right side of that picture , hmm that is accounting records and documents .

First this is the example of the single entry journal :

Why we said this is single entry journal ? because the transaction only affect two accounts that are cash and putri, capital .

Second this is the example of the compound - entry journal :

This journal affect more than two account on the transaction that are Supplies, cash, and account payable .

After we create our journal , we should posting in ledger. Now the question is how we can transform journal into the ledger ?

This is the answer :

That last important thing is the trial balance , But what is trial balance ? Trial balance is the proof of the equality of the debits and credits balance. We should created trial balance to make sure we haven't made mistake or an error in the way we posting debits and credits to our ledger.