Reflective Learning Journal on Double Entry Accounting

This paper includes a reflective learning journal on double entry accounting which covers topics like balance sheet, income statement, general ledger, and trial balance. It also discusses the importance of double entry accounting in different business entities.

Business accounting
1/10/2019

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Introduction
The aim of the paper is to include the reflective learning journal of the topic that has been
selected from the week study. The reflective learning journal is essential for recording and
analysing the experience of the learning business accounting for the process as well as for the
product. The topic that has been selected for this paper is double entry accounting which includes
different topics like Balance sheet, Income statement, statement of changes in equity, the effect
of transactions on the accounting equations, formats of accounts, and many others.

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Reflection learning journal
In the week learning, I get to know double entry accounting which is one of the important topics
of the accounting. I learnt that double entry is an important idea underlying present-day
bookkeeping and accounting which shows that every financial transaction leads to the equal and
opposite effects in and leads two dissimilar books of the accounting. Further, this method
satisfies the equation that includes Assets= Liabilities + Equity (Sangster, 2015). This equation is
required to be the same while doing the double entry accounting. According to the lecture, I
learnt that this method of accounting can be used in different types of business entities which
include single proprietorship or sole trader, partnership and company or corporation. Further, I
experience that the double entry method includes the different types of information types which
include financial information, financial position and changes in equity. This information is used
by the company in making the financial decision and evaluating the same (Maynard, 2017).
According to my view, the financial performance information reflects the ability of the entity to
make use of its assets effectively so that they can generate the cash flow.
This has been found in the lecture that double entry accounting includes the concept of the
balance sheet. I learnt that a balance sheet is known as the declaration of financial position which
reflects the assets, liabilities and equity. I understood from the lecture that balance sheet s the
state of the assets, liabilities and capital of the business or other organisation at the specific
opinion in time which is only way to deal the balance of revenue and expenses over the
preceding period. In addition to this, I learned the need for the income statement for preparing
the balance sheet. The income statement is one of essential financial statement that is used by the

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reporting of a company's financial performance. In addition, I enhanced my skills and knowledge
for the rules of the debit and credit and their importance in accounting.
I gained the information related to the declaration of variations in equity that presents the entity’s
profit or loss of the reporting period. It is the reconciliation of the beginning and ending balances
in the business’s equity at a particular reporting period (Pilbeam, 2018). I experienced that
double entry transactions create an effect on the accounting equations. The equations of
accounting always tried to balances both the sides. I learnt that the transactions of the double
entry create an impact on the two components which majorly include assets, liabilities and
owners’ equity. Further, I experience that after recording the transactions of the double entry
there is equality in the accounting equation.
In addition to this, the lecture enhances my knowledge for the accounting cycle, an accounting
cycle is referred to a holistic process of recording and processing the financial transactions of the
company. I found that accounting cycle majorly includes steps in the cycle and records of
accounting. The steps in the cycle majorly include the recognition and record of transactions
with the preparation of the financial statements (Gitman, Juchau and Flanagan, 2015). On the
other hand, the accounting records majorly include the source documents and financial
statements. This knowledge about the accounting cycle contributed in enhancing my existing
skills and knowledge towards the double entry accounting.
Further, I understood that sourcing of the documents in the form of entries plays a vital role
because this can support entries in the accounting records. The common sourcing of documents
is done through Tax invoice, purchase order, credit card slip and cash register tape. I attain the
knowledge that there is set format of the accounts that is followed by the company in the double

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entry accounting that are T-account and running balance accounts. I enhanced my skills related
to T-Accounts which shoes that the convenient way is to reflect the individual accounts, to
reflect the effect of transactions, offer quick calculations. Further, I also get to know that running
balance accounts are majorly used in the formal accounting systems and standard presentations
for the computerised systems.
In the week lecture, I also attained the knowledge for the general ledger account which is an
account that is used to sort, store and summarize a company’s transactions. The general ledger is
important for the organisation as it is known as the collection of all the individual accounts of an
entity. I understood that for general ledge it is just to record the transaction in the books of the
journal that helps in reducing the errors and presenting the information in an appropriate manner.
Moreover, the general helps in reflecting the effect on two accounts which makes the preparation
of ledger easier (Carey, Knowles and Towers-Clark, 2017).
In the double entry accounting, I learnt about the concept of trial balance as well, which is a
testament of all debits and credits in the account of double entry. The trial balance is a list of all
the general ledger accounts that include the details of the ledger of business in which debts
remain on one and credits on another side (Weygandt, Kimmel and Kieso, 2015). I learned that
the total of both the columns need to be equal which shows that the accounting done for the
company is appropriate.

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Conclusion
For the above discussion, it can be concluded that double entry management is one of the
essential concepts that is used by different businesses. Along with this, I learned the numerous
concepts that are included in the double entry accounting such as balance sheet, income
statement, general ledger and trial balance. It is understood that it is must for the company to
make use of the double entry accounting in their organisation.

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References
Carey, M., Knowles, C. and Towers-Clark, J. (2017) Accounting: a smart approach. UK: Oxford
University Press.
Gitman, L. J., Juchau, R., and Flanagan, J. (2015) Principles of managerial finance. AU: Pearson
Higher Education.
Maynard, J. (2017) Financial accounting, reporting, and analysis. UK: Oxford University Press.
Pilbeam, K. (2018). Finance & financial markets. UK: Macmillan International Higher
Education.
Sangster, A. (2015) The genesis of double entry bookkeeping. The Accounting Review, 91(1),
pp.299-315.
Weygandt, J. J., Kimmel, P. D., and Kieso, D. E. (2015) Financial & managerial accounting.
New Jersey: John Wiley & Sons.

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Conclusion