Basic Bookkeeping Essay

Assessment 1. Written Assessment1. Give an example of daily financial records that you could have to maintain?Update your accounts due and accounts payable daily on your accounting computer using the softw ar provided or modifies to suit the organisational concomitant needs.2. What ar the requirements regarding identifying and rectifying errors in documentation? Using the right accounting mode notes and assemblage Using professional bookkeeping regularity hiring specialist, equal accountant or bookkeeper. Separate personal and business finances Ensuring employee and some other categories are recorded accurately Perform basic account reconciliation. action adequate internal examines Save receipts for small purchases Know the struggle between profit and cash flow Rely also on a paper environment Honour your cheques and GST3. How can you ensure that confidence and debit transactions are accurately recorded, in accordance with organisational requirements?The physical exer tion of computer software. The system will automatically record entries behind the scenes. run into each transaction as amount that will either subjoin or decrease specific accounts, i.e. your bank, revenue as the Chart of Accounts.4. What are the requirements regarding the maintenance of transactions in a full general ledger?The suffice is to record each journal entry into the general ledger. A general ledger holds four types of accounts assets, liabilities, income, expenses and references equity.Income and expenses are real types of asset and liability accounts. there are only two types of accounts managed by a General script Accounts that tell you how much you are owed Accounts that tell you how much you owe5. What are the requirements regarding the card of transactions into the general ledger? Commencing business entries Correction of posting errors Interest expense Interest receivable non-cash transactions Purchase of a flash-frozen asset on credit Sale of a fixed asse t on credit- Withdrawal of stock/assets by owner Write-off a bad 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 entire of the creditors schedule 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. Explain 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 kayoed of a busin ess. The cash method is used primarily by furbish up 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 switch to accrualaccounting, because this makes it easier to accurately match revenue to expenses.