Basic Bookkeeping Essay

Assessment 1. Written Assessment1. commit an example of daily financial records that you could have to maintain?Update your scotchs receivable and accounts payable daily on your accounting computer using the software provided or modifies to suit the compositional particular needs.2. What are the requirements regarding identifying and rectifying errors in supporting? Using the right accounting order cash and accrual Using professional bookkeeping method hiring specialist, qualified accountant or bookkeeper. Separate personal and business finances Ensuring employee and other categories are record accurately Perform basic account reconciliation. Implement adequate internal controls Save receipts for sensitive purchases Know the difference between profit and cash flow Rely also on a paper environment Honour your cheques and GST3. How can you ensure that credit and debit transactions are accurately recorded, in accordance with organisational requirements?The use of computer softwar e. The system will automatically record entries behind the scenes. compute each transaction as amount that will either increase or decrease detail accounts, i.e. your bank, revenue as the Chart of Accounts.4. What are the requirements regarding the maintenance of transactions in a commonplace rule book?The process is to record each journal entry into the general ledger. A general ledger holds 4 types of accounts assets, liabilities, income, expenses and references equity.Income and expenses are actually types of asset and liability accounts. There are only two types of accounts managed by a General Ledger Accounts that tell you how much you are owed Accounts that tell you how much you owe5. What are the requirements regarding the batting order of transactions into the general ledger? Commencing business entries Correction of posting errors Interest expense Interest receivable non-cash transactions Purchase of a intractable asset on credit Sale of a fixed asset on credit- With drawal of stock/assets by owner Write-off a negative debt6. What is the process for reconciling systems for accounts payable and receivable in the general ledger? Checking accuracy or creditor account balances (e.g. cash payments journal, purchases journal, purchases returns journal, general journal) Checking accuracy of debtor account balances (e.g. cash receipts journal, sales return journal, general journal) Checking cash payments and receipt journals against bank statement Checking the total of the creditors record equals the balance of the creditors control account. Checking the total of the debtors schedule equals the balance of the debtors control account7. Financial Reporting has two methods of accounting. What are they? Cash collection8. explicate the two methods and give examples of which reporting method can be used by what size organisation?Cash AccountingThis is the simpler method because it is based on the actual flow of cash in and let on of a business. The cash method is used primarily by sole proprieties and business with no inventory.Accrual AccountingThis records income and expenses as they occur, whether cash has actually changed hands or not. Most small business should understudy to accrualaccounting, because this makes it easier to accurately match revenue to expenses.