Accounting Adjustments Explained
An accounting adjustment is an entry made to the general ledger (or books) as at a specified date, rather than part of day to day bookkeeping
Make sense of accounting
An accounting adjustment is an entry made to the general ledger (or books) as at a specified date, rather than part of day to day bookkeeping
The accounting equation is at the heart of accounting. It states that fundamental every transaction always has 2 entries to ensure accuracy. Find out more about the accounting equation for different business entities, the expanded version and how it ties up to the balance sheet.
Subsidiary ledgers form part of the accounting process when help is needed to keep track of financial information that isn’t recorded in the books of prime entry. In this guide, you’ll find out more about the subsidiary ledgers, the most common types used and how they fit into the accounting process.
The general ledger in accounting is a summary of the financial transactions of a business recorded in the books of prime entry. In a computerised system, it is also referred to as the nominal ledger or the chart of accounts.
Ledgers in accounting contain summaries of financial information recorded in the books of prime entry. Here’s how they work and an example of what they look like.
The accounting process is the series of 6 steps taken to gather, summarise and present the financial information of a business. In this guide, you can find out exactly what the 6 steps are and their sequence.
The petty cash book records what happens with cash in a business. This guide uses an example to discuss why it matters & the imprest system which allows for a cash float to be maintained.
The books of prime entry are the starting point for summarising important information in accounting. Read this guide to learn why, how to use them and the 6 types of books.
A purchase day book is used to record details of goods & services bought by a business. Here’s an example of how it is used & why it’s needed.
A bank reconciliation helps to check for errors in the cash book. Learn why they are necessary and take a look at an example of preparing one