Points to Remember
- A transaction is an event or happening that changes an organisation’s financial position and/or its earnings.
- A source document or voucher is a document which provides evidence of a company’s transaction.
- The accounting equation is: Assets= Liabilities + Capital.
- Journal is a day book or daily record wherein the transaction are recorded in chronological order.
- The process of recording transactions in the journal is called journalising.
- Ledger is a book of final entry and it contains all the accounts of a business or all the accounts of a particular type.
- The process of transferring journal entry to individual accounts is called posting.