The most ideal approach to master bookkeeping essential and investigate test general record diary passage is to examine genuine examples and see how they function and how they ought to be represented. So in this article I will investigate general diary and general record passages and clarifying their quintessence.

General Journal Entries

On the off chance that we return to the bookkeeping cycle and how the bookkeeping information is recorded we can recollect that every one of the exchanges which affect the money related position of the business are as a matter of first importance recorded in the general diary. This an exceptional shape where we show which account and by which sum is charged and credited and give a short depiction of the exchange recorded. For instance, on the off chance that we record obtaining of stock using a loan, in the general diary we will record the accompanying passage:

D Inventory XXXX

___C Accounts Payable XXXX

Obtaining of stock using a loan

Record Entries

The subsequent stage after the exchange has been recorded in the general diary is to post the passages into the general record. This is a universe of all records which are utilized by the business to account. Each record has a name and two side, i.e. charge and credit side. On these sides the sections from general diary are being posted. On the off chance that we return to the model over, the accompanying presenting will be done on this record:

D_______Inventory______C

XXXX_________________

D____Accounts Payable___C

___________________XXXX

Test General Ledger Journal Entry

Consolidating the two stages above we get general record diary section. For further better understanding let us investigate two examples.

1. Obtaining of settled resources for money for $3500

To begin with, we make a record in the general diary, i.e.:

D Fixed Assets $3500

___C Cash $3500

Securing of settled resources for money

Second, we make a post into the record, i.e.:

D_____Fixed Assets____C

3500___________________

D____Cash___________C

__________________3500

2. Installment to the providers with money for the stock obtained, the sum paid is $1340

To start with, we make a record in the general diary, i.e.:

D Accounts Payable $1340

___C Cash $1340

Installment for stock procured

Second, we make a post into the record, i.e.:

D_____Accounts Payable____C

1340___________________

D____Cash___________C

__________________1340

Toward the finish of the bookkeeping time frame when every one of the exchanges are recorded in the above way and presented on the general record, we abridge the records to get their last adjusts and plan preliminary parity.

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