About This Chapter
Journals in Accounting - Chapter Summary
What are general journals and ledgers? Which types of special journals are used in accounting? What are closing entries? This chapter will provide a review of this type of information through simple explanations, definitions and detailed examples.
You will study facts about control accounts, contra accounts, profit and loss summaries, assets and other topics relevant to accounting journals and ledgers. After you have completed your study of this chapter, you should be able to:
- Define and describe the uses of journals for sales, purchases, cash receipts and cash payments
- Explain the purpose and format of a general journal in accounting
- Discuss what a contra account is and what it reflects the value of
- Describe uncollectable accounts and how they are accounted for
- Record infrequent transactions in a general journal
- Provide details about and examples of non-current assets
- Talk about the use of control accounts and prepare loss/profit summaries and adjusted trial balances
- Detail the process for closing entries
You will receive expert instruction via text and video lessons that are accessible at all times, from any device. This means you can study at your own pace and when it's most convenient for your schedule. Self-assessment quizzes found in each lesson are great tools you can use to determine if you have mastered these topics and if you need any further study in any part of this chapter.
1. Cash Payments Journal: Definition & Example
In this lesson, we'll learn about cash payments journals. We'll explain how a company might use one and use an example to learn how to make entries. The lesson will be concluded with a summary and a quiz.
2. Cash Receipts Journal: Definition & Examples
This lesson explains how a cash receipts journal is used by a business, what types of transactions are posted in a cash receipts journal, and how to keep those transactions balanced.
3. Purchases Journal: Definition & Example
This lesson explains what a purchase journal is, how it is used, and what types of transactions are recorded in a purchase journal. Several different examples of purchase journal postings are included.
4. Sales Journal in Accounting: Definition & Examples
In this lesson, we will explain the sales journal, a journal used to record sales made on credit. We will explain the use of this sub-journal, and provide examples of creating a sales journal.
5. What Is a General Journal in Accounting? - Definition, Format & Examples
The general journal is usually the first of a company's accounting records that we learn about and use, but it can also be one of the most misunderstood. It doesn't have to be difficult, though, as we'll show here.
6. Contra Account: Definition & Examples
General ledger accounts will have a debit or credit normal balance, and contra accounts that offset the parent account. This lesson will explain what a contra account is and how it works to accurately show the value of a firm's financial statements. It will also provide examples to illustrate the impact.
7. Uncollectible Accounts, the Allowance Method & Bad Debt
Do you think that every customer that opens a credit account will pay off their balance completely? In the real world, not every customer does. In this lesson, you are going to learn what uncollectible accounts are and how to account for them.
8. Using a General Journal to Record Infrequent Transactions
In accounting, as in life, not everything can be frequent or routine. In this lesson we will define the general journal and how it can be used to log infrequent and non-cash transactions.
9. Non-Current Assets: Definition & Examples
The accounting industry is centered on a basic equation: Assets = Liabilities + Owner's Equity. To fully understand this, you must first understand each component of the equation. In this lesson, we will discuss one category that falls under the classification of an asset: non-current assets.
10. What Is a General Ledger? - Definition & Examples
Accountants and bookkeepers record financial events in multiple documents in order to ensure the accuracy of the information. In this lesson, we will look at the general ledger and you can discover how to make entries into this ledger.
11. Control Accounts: Definition & Uses
In this lesson, we'll learn about control accounts in accounting. We will define what they are and outline their use and purpose in keeping a clean general ledger.
12. Closing Entries: Process, Major Steps, Purpose & Objectives
The accounting cycle is a multi-step process. In this lesson, you will learn about part of that process: making closing entries. You will learn what closing entries are, what accounts are affected, and how they are made.
13. How to Prepare a Profit & Loss Summary
Knowing how to prepare a profit and loss summary is important for any business. Learn how to prepare one, how the net profit or loss is transferred to a capital account, the meaning of transferring drawings to a capital account, and why it's performed.
14. Adjusted Trial Balance: Definition, Preparation & Example
There are many steps in the accounting cycle that must be taken before a company's financial statements are prepared. In this lesson, we will be discussing one of those steps - creating an adjusted trial balance.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Budgeting in Business
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Accrual-Based Accounting System
- VCE Accounting Flashcards