Dual Entry Accounting: Recording, Journals, Ledgers, and Trial Balance

UNIT 10

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Recording dual entry accounting written records in a well-timed and accurate way.......3
2 A range of organization transactions with the help of dual entry accounting, journals and
ledgers.....................................................................................................................................5
Ledgers of Tenney York company :.......................................................................................6
Extract the ledger balances and record the transactions in Trial Balance............................11
Prepare Bank Reconciliation Statement...............................................................................13
The roles and differences b/w control and suspense accounts.......................................14
RECONCILIATION OF ACCOUNTS RECEIVABLE AND PAYABLE...................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The accounting procedure is defined as the act of recording, summarising and analysing
financial transactions pertaining to a specific period of any type of organisation. In layman terms
the accounting procedure defines the management of monetary events which leads to smooth and
potent running of business. This procedure is not only beneficial for entities but also of great
significance for the government, oversight agencies and tax collection authorities (Arismaya,
2022). It chiefly is used for used for keeping track of all internal proceedings occurring in an
organization, which protects the employees along with the users of financial information from
any misconduct leading to impactful losses. The accounting is mainly implemented via three
core documents that are: Cash flow statement or a document defining all cash transactions,
Comprehensive Income Statement which summarizes standard net income and other income,
Balance Sheet or statement defining assets and liabilities and Equity Statements which
concentrates on Owner's Equity. In the following project, all of the essential principles related to
accounting are defined as well as an analysis related to transactions made in course of
furtherance of business. The most important aspect of accounting is to efficiently strike a balance
between assets and liabilities which is also discussed later via journal entries, ledgers, trial
balance and bank reconciliation in context to dual entry system of accounting. Through this
project, an individual will be able to implement and understand basic accounting methods to
monetary transactions. However, it should be noted that to perform efficient and effective
accounting for an organization, proper books of accounts and skilled personnels are required
(Centobelli and et.al., 2021). The underlying examples, simply provide a brief explanation or
summary about what the essence of accounting is all about, like for instance, how different types
of invoices, orders, statements, receipts are recorded and used for further assessment in
previously mentioned documents.
MAIN BODY
P1 Recording dual entry accounting written records in a well-timed and accurate way
Recording items or written records is essential to a enterprise corporate statements and a central
obligations of department of accounting. Not only will this assist for legal purposes, but it could
also prevent any disputes with your customers. Transactions can change the balances of the
accounts that occurs in any organization.

It is an accounting method which used to recorded the transactions in more than one account.
The total of debit and credit side must be equal or balance. A debited entry shows on the left side
of the account and credited transactions shows on the right side of an account (Duţescu, 2019).
Either these transactions help to increase the account balance or decrease. Its totally depends on
the account.
It has multi steps to record the business enterprise transactions or items.
To examine the items is a first step of this method. It helps to decide that which account will be
affected more.
To decide the category of account i.e. what will be debited or credited.
Documentation of the transaction in journal.
There are 3 golden rules for recording the transactions:
 receiver to the debited, given to the credited. (Personal A/C)
 What comes in- debit, what goes out- credit. (Real A/C)
 All the expenses and losses are debited, all the income and profit are credited. (Nominal
A/C)
Journal is a main entry book or an original entry book in which the event is first entered in
a linear order or sequence. As all transactions are originally documented in it, the document is
called the Book of Original Entry. The process by which the transaction is reported in the journal
is called journalising. The benefit of a report is the compilation of financial data in chronological
order. The journal's only drawback is that it is difficult to document all the heavy and
unmanageable transactions (Habibu Umar, 2021).
In the ledger, all accounts opens in different pages. All related transactions are collected in
register. Trial balance might be prepare with the help of its balances which assists to measure the
accounts in monetary terms and income and expenses A/C can be planned. For the purpose of
reflect the business's corporate conditions, a balance sheet can also be prepared. There are many
rules of posting the transactions in ledger that are discussed below :
1. All the related items account should be recorded at one side. There is no more than
one opening balance with same items accounts. These all should be assembled in one account.
2. In journal entry, there is any account which is debited so it will be record in same side
in ledger as same with the credited account.