OVERVIEW
Objective
¾
To illustrate data sources and records in a typical accounting system.¾ Payments SALES
TANGIBLE NON-CURRENT
ASSETS
INVENTORY PURCHASES/
EXPENSES ¾ Additions
¾ Disposals
¾ Received CASH
¾ Receipts
1
SALES
Documentation Book of prime entry Double entry
(in general ledger)
Received from customer (orally or in writing)
On standard forms:
customer details product codes product quantities (+/- prices)
product quantities delivery details
Transactions in period - sales invoices - cash receipts Balance receivable
Other records
CUSTOMER (eg "bin" cards)
product quantities
prices, VAT etc SALESDAY BOOK
Dr Receivables ledger control a/c Cr Sales
EXTRACTION
Prime entry
Double entry
Other
2
PURCHASES/EXPENSES
Documentation Book of prime entry Double entry
(in general ledger) On standard forms:
Request for expense to be incurred
Order placed with supplier
- product codes - quantify +/- price
Other records
PURCHASE RENDERED)
PURCHASE/ product codes
quantities
PURCHASE DAY BOOK
Dr Purchases a/c Dr Telephone a/c Dr Rent a/c , etc
Cr Payables ledger control a/c
RECONCILED
Prime entry
Double entry
Other
or vice versa product quantities
prices, VAT etc
3
CASH
Documentation Book of prime entry Double entry
(in general ledger)
Customer's advice of payment being made
Other records
CHEQUE/ PAYMENT REQUISITION
CHEQUE/ DIRECT DEBIT ETC
MEMO PAYABLES
LEDGER CASH
BOOK (Payments)
Dr Payables ledger control a/c Cr Bank/cash (control) a/c REMITTANCE
ADVICE
MEMO
RECEIVABLES
LEDGER CASH
BOOK (Receipts)
Dr Bank/Cash (control) a/c
Cr Receivables ledger control a/c CHEQUE OR
CREDIT TRANSFER
+/-Request for payment to be paid
4
INVENTORY
Documentation
Supplier's despatch note accompanying goods
Other records
ADVICE/ DELIVERY
NOTE
GOODS RECEIVED NOTE ("GRN")
GOODS DESPATCH
NOTE
INVENTORY RECORDS goods (products)
quantity +/- quality On standard form: 4.1 Goods received
4.2 Goods despatched
delivery details goods
quantity On standard form:
+
-5
TANGIBLE NON-CURRENT ASSETS
Documentation Book of prime entry Double entry
(in general ledger)
On standard form
Other records
CHEQUE BOOKCASH (Receipts)
Dr Bank/cash (control) a/c Cr Disposals a/c
Authority to dispose/ scrap asset
5.2 Disposals 5.1 Additions
CAPITAL EXPENDITURE
REQUISITION
PURCHASE ORDER (PO)
ASSET REGISTER See PURCHASES/EXPENSES
PURCHASE INVOICE
Proceeds (if any)
? ? ? JOURNAL Dr Disposals a/c (NBV)Dr Accumulated depreciation a/c Cr Asset a/c (cost)
6
SUMMARY
6.1
Typical manual system
Cash and other general ledger a/c
Trial balance (check for errors)
Revised G/L a/cs
Cash receipts Cash payments Credit purchases Credit sales
Revenue a/c
Memorandum
Individual customers' accounts: detail only
Purchases a/c Payables ledger
control a/c
Journals Receivables ledger
control a/c
Memorandum
Individual suppliers' accounts: detail only
(book of prime entry) General
ledger a/cs Transactions
Books of prime entry
