Reflective Journal on Accounting Topics - Desklib

Reflective journal
In this course, I had learned various accounts related topics explanations for my leaning
regarding each topic is given below,
These courses teach me about the presentation an preparation of the financial statements as per
the accounting standard’s framework. It also helps me implementation o various accounting
standards and guidelines issued by accounting stand board of Australia.
Double entry accounting: In this week I learned regarding the double entry bookkeeping. This
makes me eligible to understand the primary financial information basis for an organization i.e.
statement of financial position, performance and equity changes. It also makes me clear how the
basic accounting equation works i.e. addition of liabilities and equity always equal to total assets
of the organization. This accounting equation works behind the double entry bookkeeping
system. It also explains the process of conversion of a transaction recorded in the journal entry
format to its representation by the financial statement. In addition to this three rules that work
behind the initial recording of every transaction is also learned by me in this week. It makes me
understand that every asset increase, liability decrease and occurrence of expenses should be
debited, on the other hand, every asset decrease, liability increase and occurrence of income
should be credited. After the journal entry recording, this week also helped in learning the ledger
posting(Deegan 2016). The general ledger is a collection of all ledger accounts in the order of
their account number. Such accounts are expected to show on the balance sheet in the same order
in which those are presented in the general ledger. All account balances from the trial balances
transfer to the respective financial statement. Leanings of this week was about the bookkeeping
i.e. primary recoding of the transaction by journal entry, then posing of such transaction to ledger
accounts and then preparing of trial balance by using all accounts balances and at last making
financial statements by using adjusted trial balance figures.
Sales and purchases: This week makes me able understand that major objective for recording all
transactions is profit determination. As per the GST regulations, every retail organization having
sales revenue more than $75000 must have ABN and required to register for GST. GST
registration results in getting and claiming input tax credit on purchases. It also required
producing a tax invoice for sale above than $75. Tax invoice required to have ABN number,
date, supplier’s name and other descriptions. Sale and purchase transaction having GST impact
must record GST as well in the journal entry. In sale transactions, GST payable account requires
to credit and in purchase transactions GST receivable account required to debit. In addition to
this GST amount also affected by the return transactions and credit debit note also required
issuing on return transactions. In sales return transaction GST payable account debited which
results in a reduction in liability regarding the GST payment. Additionally, in purchase return
transaction GST receivable account credited which results in a reduction in input tax credit
regarding the GST payment.