Let us first study the accounting equation; Assets = Liabilities + Owner's Equity (A=L+O)
Books of Accounts - is a set of books used by accountants to record transactions and events that are financial in nature.
Transactions - are exchanges that involve value received or value parted with.
(The next books, I know that we are already familiar with. We studied it on the previous lesson)
*All entries in the general journal are posted in the general ledger
Journal - book of original entry.
General Journal - recognized as the first book of entry. It is the first place where transactions are recorded. It provides a description with each transactions.
Special Journal -record specific types
-sales book
-purchases book
-cash receipts
-cash disbursement
Ledger - book of final entry
General Ledger - generally a file or book used to keep records of all relevant accounts; include expenses, assets, revenues, liabilities and capital.
Subsidiary Ledger
-Accounts Receivable
-Accounts Payable
Charts of Accounts - is a listing of titles that are to be used for the accounting period, which is usually a calendar year or a fiscal year.
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Frias, S. (2016) ABM
Investopedia.com
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Accounting
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