Accounting Processes - Book-keeping To Final Statements

The most important lesson that every aspiring accountant learns right through his education and training is that of recording the transactions accurately and in the proper format. For there can be nothing more damaging to the credibility of the accounting process, if one could not rely on the figures thrown up.

Book-keeping is an important aspect of an accountant\'s job. Although it might seem quite mechanical, practically it is not so. In a large organization, despite standardized or mechanical data capture facilities book-keeping is the best way to exercise control.

Accountants record transactions on the basis of vouchers. A voucher is a concise slip that shows the appropriate item to be debited or credited along with full details of the supporting documents. Usually, cash and check payments are recorded through vouchers. Assume, the firm paid $20 in cash for buying office stationery. The debit voucher shows the account to be debited as Printing and Stationery or any equivalent term, the amount paid in figures and words and the details of the bill from the supplier.

For the sales and purchases transactions, entries are made in a book called the sales journal and purchases journal. The credit sales and purchases are recorded with complete details about bill number, party name, quantity and total amount. The daily totals from the journals are posted into the respective ledger accounts. Cash sales and purchases are posted directly from the cash book.

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