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Analyzing, Recording, and Classifying

Introduction

This chapter of the Accounting 101: Basics course deals the analyzing and recording (journalizing) business transactions, and classifying (posting) the accounting records.

What's in Here

Aside from journalizing transactions and posting to the ledger, this chapter also tackles additional basic accounting concepts such as debits and credits, chart of accounts, trial balance preparation, and correcting entries.

Image link to Business Transactions
Lesson 1

Understanding and Analyzing Business Transactions

An accounting system must record all business transactions to ensure complete and reliable information when the financial statements are prepared. Before going to the recording process, let us understand business transactions first.
Image link to Debit and Credit
Lesson 2

Rules of Debit and Credit: Left versus Right

Debit means left and credit means right. Learn how to use debit and credit in this lesson.
Image link to Chart of Accounts
Lesson 3

The Chart of Accounts – Example and Explanation

Before recording transactions into the journal, we should first know what accounts to use. This is where a chart of accounts comes in handy.
Image link to Journal Entries
Lesson 4

Journal Entries: Recording Business Transactions

In double-entry accounting, business transactions are recorded in the journal through journal entries. The journal, also known as Books of Original Entry, keeps records of transactions in chronological order.
Image link to Examples of Journal Entry
Lesson 5

More Journal Entry Examples

We provide some more sample transactions and their journal entries to help you get used to the recording process...
Image link to Accounting Ledger
Lesson 6

Posting to the Accounting Ledger

In accounting, a ledger refers to a book that consists of all accounts used by a company, the debits and credits to each account, and the resulting balances. The ledger is also known as Books of Final Entry.
Image link to Trial Balance
Lesson 7

Trial Balance: Testing the Equality of Debits and Credits

A trial balance is a report that summarizes the balances of the ledger accounts after the posting process. A trial balance is prepared primarily to test the equality between total debits and total credits.
Image link to Correcting Entries
Lesson 8

Correcting Entries for Errors Detected

When an error is discovered in the accounting records, it should be corrected immediately to prevent the processing of wrong data which will result to unreliable financial statements. This is done through correcting entries.
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