Bookkeepping

Nicole Aupperlee

October 2, 2012

Unit 9 Essay

Book Keeping

Professor Yancey

In a medical field or in any field of business there are book keeping systems that we might use. We could do it ourselves or have someone outside the office help do them. There are many different book keeping systems so examples are peg entry, single entry, and double entry.

The pegboard also known as the write-it-once, bookkeeping system uses a board with pegs running down the left side. The pegs hold a day sheet, or daily journal, in place on the board. All transactions for the day are recorded on this day sheet.

A single entry system records each accounting transaction with a single entry to the accounting records, rather than the vastly more widespread double entry system. The single entry system is centered on the results of a business that are reported in the income statement. The core information is tracked in a single entry system as cash disbursements and cash receipts. The primary form of record keeping in a single entry system is the cash book, which is essentially an expanded form of a check register, with columns in which to record the particular sources and uses of cash, and room at the top and bottom of each page in which to show beginning and ending balances.

Double entry system is an accounting technique which records each transaction as both a credit and a debit. Credit entries will represent the sources of financing, and the debit entries will represent the uses of that financing. Since each credit has one or more corresponding debits (and/or vice versa), the system of double entry bookkeeping always leads to a set of balanced ledger credit and debit accounts. Selected entries from these ledger balances are then used to prepare the income statement.

According to Delmar’s book they say the peg system is easier for medical assistant to learn. (Page 460) In my opinion they all look like you need a lot practice and be very careful when doing...