'Basic Bookkeeping Essay\r'

'Assessment 1. Written Assessment\r\n1. harbour an example of daily financial records that you could permit to maintain?\r\nUpdate your studys due and accounts payable daily on your accounting electronic computer using the softwargon provided or modifies to lodge the organisational particular needs.\r\n2. What are the requirements regarding identifying and rectifying errors in reenforcement?\r\n†Using the right accounting order: capital and accrual\r\n†Using master key bookkeeping order: hiring specialist, qualified restrainer or bookkeeper.\r\n†Separate personal and clientele finances\r\n†Ensuring employee and other categories are enter accurately
 †Perform basic account reconciliation.\r\n†Implement adequate internal cracks\r\n†conserve receipts for small purchases\r\n†Know the residual between profit and cash eat\r\n†Rely also on a paper environment\r\n†Honour your cheques and GST\r\n3. How push aside you ensure that credit and debit minutes are accurately recorded, in accordance with organisational requirements?\r\nThe use of computer software. The system ordain automatically record entries behind the scenes. upset each transaction as kernel that will either increase or decrease specific accounts, i.e. your bank, revenue as the Chart of Accounts.\r\n4. What are the requirements regarding the maintenance of proceeding in a commonplace record book?\r\nThe process is to record each daybook entry into the common ledger. A familiar ledger holds four types of accounts: assets, liabilities, income, expenses and references equity.\r\nIncome and expenses are really types of asset and liability accounts. There are only cardinal types of accounts managed by a General Ledger:\r\n†Accounts that tell you how oft you are owed\r\n†Accounts that tell you how much you owe\r\n5. What are the requirements regarding the notice of transactions into the cosmopolitan ledger?\r\nà ¢â‚¬ Commencing note entries\r\n†Correction of posting errors\r\n†Interest expense\r\n†Interest due; non-cash transactions\r\n†Purchase of a unflinching asset on credit\r\n†barter of a fixed asset on credit\r\n- Withdrawal of stock/assets by owner\r\n†Write-off a prominent debt\r\n6. What is the process for reconciling systems for accounts payable and receivable in the general ledger?\r\n†Checking true tick 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)\r\n†Checking cash payments and receipt journals against bank statement\r\n†Checking the total of the creditors schedule equals the balance of the creditors control account.\r\n†Checking the total of the debtors schedule equals the balance of the debtors control account\r\n7. Fina ncial Reporting has two methods of accounting. What are they?\r\n
 †Cash\r\n†Accrual\r\n8. rationalize the two methods and give examples of which reporting method can be utilize by what size organisation?\r\nCash accounting system:\r\nThis is the simpler method because it is based on the actual flow of cash in and give away of a business. The cash method is used primarily by sole proprieties and business with no inventory.\r\nAccrual Accounting:\r\nThis records income and expenses as they occur, whether cash has actually changed hands or not. Most small business should confuse to accrual accounting, because this makes it easier to accurately match revenue to expenses.\r\n'