Xacc/280 the Recording Process

The Recording Process

In appendix C on the general journal I am recording when I move amounts from one account to another account (debit to credit or credit to debit). The general ledger that I have completed shows a summary of all the accounts that Jane Kent, Inc. has and what the balance is. If the balance is in (parenthesis) than it means the balance is a negative amount. The Trial balance is a fairly important sheet as well. The trial balance sheet will prove that all of the bookkeeper’s balances are mathematically correct. The general goals of financial reporting is to keep track of where money that is going into and out of your company. Reporting it correctly is important because internal and external users need to have the correct information to make sound decisions.

The first step in the recording process is analyzing the information that I had available to me. After looking at this information I could determine what type of transaction it is and record it in the general journal. In the general journal I write down a date, type of transaction, reference, and whether it is a debit or credit. After completing the general journal I would start on the general ledger. The ledger is a summary of the general journal. In the ledger each type of transaction has its own balance (accounts payable, cash, accounts receivable, etc.) After the ledger the trial balance is made. Like I mentioned above, the trail balance is just ensuring that the mathematics were correct. The steps in the recording process are important to follow. If the steps are not followed than an incorrect amount is found which can damage the company.