(6179) 4. Accounting in For Nation System

Accounting Information Systems
2002 Prentice Hall, Inc.
Business Publishing
Accounting, 5/E
Horngren/Harrison/Bamber
6-1
Objective 1
Describe the features of an effective accounting information system.
Business Publishing
Accounting, 5/E
6-2
Basic Features
Control Comparability Flexibility Cost/benefit relationship
2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6-3
Basic Features

Internal controls are the methods and procedures used to authorize transactions and safeguard assets. Comparability means that the system works smoothly with operations, personnel, and the organizational structure.
Business Publishing
Accounting, 5/E
6-4
Basic Features

Flexibility relates to the systems ability to accommodate changes in the organization. A cost/benefit relationship indicates that the cost of controls do not exceed their value to the organization.
Business Publishing
Accounting, 5/E
6-5
Computerized Accounting System

Hardware
Software Company Personnel

2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6-6

Hardware is the electronic equipment that makes up a computer system. Software is a system of instructions that drive the computer to perform various functions. Properly trained personnel are critical to the successful operations of the system.
Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6-7
Objective 2
Understand how both computerized and manual accounting systems work.
Business Publishing
Accounting, 5/E
6-8
Three Stages of Data Processing

(Source documents) Input
Processing (Financial statements)

Horngren/Harrison/Bamber 6-9
Output
2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E

ACCOUNTING RECORDS PERSONNEL
input transactions, request reports, protect records
Journals, Ledgers, Other records accessed for reports
posted
HARDWARE INPUT DATA

entered, edited
SOFTWARE PROCESSING
Accounting, 5/E
printed to paper, screen
OUTPUT REPORTS
6 - 10
Business Publishing
Designing an Accounting System

Design of the accounting system begins with the chart of accounts. The chart of accounts lists all accounts and their account number in the ledger.

Business Publishing
Accounting, 5/E
6 - 11
Menu-Driven Accounting System

Computer systems are organized by function or task. Computer systems usually have a choice of processing options on a menu.
Business Publishing
Accounting, 5/E
6 - 12
Menu-Driven Accounting System

General Receivables Payables Inventory Payroll Reports Utilities
Posting Account Maintenance Closing Use arrow keys to make choice. Press <return> to access choice. Press F7 <escape> to leave menu.
2002 Prentice Hall, Inc. Business Publishing
COMPUTERIZED ACCOUNTING SYSTEM
MAIN
Accounting, 5/E
6 - 13
Preparing Accounting Reports

Trial Financial Accounts Accounts Daily Cash Balance Statements Receivable Detail Payable Detail Report
Income Statement Balance Sheet
Statement of Owners Equity Statement of Cash Flows
Use arrow keys to make choice. Press <return> to access choice. Press F7 <escape> to leave menu.
2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6 - 14
REPORTS
Objective 3
Understand how spreadsheets are used in accounting.
Business Publishing
Accounting, 5/E
6 - 15
Integrated Accounting Systems

Computerized accounting systems are organized by modules. These modules are separate but integrated units. A sales transaction entry will update two modules: 1 Accounts Receivable/Sales 2 Inventory/Cost of Goods Sold
Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6 - 16
Anas Boutique Example

Ana wants to budget for expected cash collections in the month of May. Past experience indicates that 50% of credit sales are collected in the month of sales and 50% the following month.

Business Publishing
Accounting, 5/E
6 - 17

May sales were $250,000. $50,000 were cash sales. April credit sales amounted to $120,000. What are the expected cash collections during the month of May?

Business Publishing
Accounting, 5/E
6 - 18

May cash sales $ 50,000 Collection of Aprils credit sales 60,000 Collection of Mays credit sales 100,000 ! Total $210,000 Spreadsheets make computations like these easier.
Business Publishing
Accounting, 5/E
6 - 19
Spreadsheet Example
Formula for B4: =B2B3 Column: A Row: 1 Income Statement: 2 3 4 5 Cursor is on cell B4.
2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 6 - 20
Revenues Expenses Net Income
100,000 60,000 40,000
Objective 4
Use the sales journal, the cash receipts journal, and the accounts receivable subsidiary ledger.
Business Publishing
Accounting, 5/E
6 - 21
Special Journals

What are special journals? They are accounting journals used to record one specific type of transaction. What are some examples? Sales Purchases Cash Receipts Payroll
Cash Disbursements
Accounting, 5/E Horngren/Harrison/Bamber 6 - 22
Business Publishing
Using the Sales Journal

Sales Journal Page 5
Invoice Account Account Post Date Number Debited Number Ref. Amount Jan. 2 201 Joe Co. 120122 600.00 Jan. 2 202 May Co. 120033 700.00 Jan. 2 203 XYZ Co. 1202002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 111 900.00
6 - 23

Sales Journal Page 5
Invoice Account Account Post Date Number Debited Number Ref. Amount Jan. 2 203 XYZ Co. 120111 900.00 General Ledger Account: Accounts Receivable Account Number: 120 TOTAL Date Description Post Ref Debit Credit Balance 2,200.00 Jan. 2 Sales SJ5 2,200 120/410 2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber 2,200
6 - 24

Sales Journal
Invoice Account Date Number Jan. 2 111
Page 5
Account
Post Number Debited Ref. Amount 203 XYZ Co. 120900.00 General Ledger Account: Credit Sales Account Number: 410 TOTAL Date Description Post Ref Debit Credit Balance 2,200.00 Jan. 2 Sales SJ5 2,200 2,200 120/410 2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber
6 - 25
Subsidiary Ledger

A subsidiary ledger is often used to provide details on individual balances of... customers (accounts receivable) and... suppliers (accounts payable).
Business Publishing
Accounting, 5/E
6 - 26
A Control Account

What is a control account? It is the general ledger account. It equals the sum of the individual account balances in a subsidiary ledger.
Business Publishing
Accounting, 5/E
6 - 27
Cash Receipts Journal Page 6

Debits
Sales Date Revenue 200 Accounts Cash Jan. 2
Credits
Sales Discounts Receivable
200 11 882 900

2002 Prentice Hall, Inc. Business Publishing
18 30
Accounting, 5/E Horngren/Harrison/Bamber 6 - 28
Accounts Receivable
XYZ Company Jrnl. Date Ref. Jan. 2 S.5 11 CR.6
Subsidiary Ledger Debit 900 Credit 900 Balance 900 -0-
Business Publishing
Accounting, 5/E
6 - 29
General Ledger
Cash Jrnl. Date Jan. 31 Ref. CR.6 Debit 1,882
No. 101 Debit Credit Balance
Business Publishing
Accounting, 5/E
6 - 30
Cash Receipts Journal

Additional columns are provided to enter other account descriptions and amounts. Cash receipts amounts affecting subsidiary ledger accounts are posted daily to keep customer balances up to date. At month end, foot and crossfoot the journal and post to the general ledger.
Objective 5 Use the purchase journal, the cash disbursements journal, and the accounts payable subsidiary ledger.
Business Publishing
Accounting, 5/E
6 - 32
Purchases Journal

This is designed to account for all purchases of inventory, supplies, services, and other assets on account.
Business Publishing
Accounting, 5/E
6 - 33
Purchases Journal

Cash purchases are recorded in the cash disbursements journal. At month end the journal is footed and crossfooted. Posting to the general ledger is similar to posting from sales and cash receipts journals.
Cash Disbursements Journal

Most payments are by check and are recorded in the cash disbursements journal. The cash disbursements journal is also called: check register cash payments journal
Business Publishing
Accounting, 5/E
6 - 35
Cash Disbursements Journal

This has columns for : date check number payee cash amount (credit) accounts payable (debit) description and amount of other debits and credits
General Journal

Special journals save much time in recording repetitive transactions and posting to the ledger. However, some transactions do not fit into any of the special journals.
Business Publishing
Accounting, 5/E
6 - 37
General Journal

Every accounting system needs a general journal. What entries are recorded in the general journal? depreciation expiration of prepaid insurance accrual of salaries payable adjusting and closing entries
General Journal

Many companies record sales returns and allowances and purchase returns in the general journal. A credit memorandum is the document issued by the seller for a credit to a customers Accounts Receivable.
Business Publishing
Accounting, 5/E
6 - 39
Purchase Returns and Allowances

A debit memorandum is the business document that states that the buyer no longer owes the seller for the amount of the returned purchases. The buyer debits the Accounts Payable to the seller and credits Inventory.

Business Publishing
Accounting, 5/E
6 - 40
Balancing the Ledgers

At the end of the accounting period: Total debits and credits of account balances in the general ledger are equal. Control account balances are equal to the sum of the appropriate subsidiary ledger accounts.
Business Publishing
Accounting, 5/E
6 - 41

(6179) 4. Accounting in For Nation System

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

(6179) 4. Accounting in For Nation System

Enviado por

Direitos autorais:

Formatos disponíveis

Accounting Information Systems

2002 Prentice Hall, Inc.

Describe the features of an effective accounting information system.

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

Computerized Accounting System

Software Company Personnel

Computerized Accounting System

2002 Prentice Hall, Inc.

Understand how both computerized and manual accounting systems work.

2002 Prentice Hall, Inc.

Three Stages of Data Processing

Processing (Financial statements)

Computerized Accounting System

Journals, Ledgers, Other records accessed for reports

HARDWARE INPUT DATA

printed to paper, screen

2002 Prentice Hall, Inc.

Designing an Accounting System

2002 Prentice Hall, Inc.

Menu-Driven Accounting System

2002 Prentice Hall, Inc.

Menu-Driven Accounting System

COMPUTERIZED ACCOUNTING SYSTEM

Preparing Accounting Reports

Income Statement Balance Sheet

Statement of Owners Equity Statement of Cash Flows

Understand how spreadsheets are used in accounting.

2002 Prentice Hall, Inc.

Integrated Accounting Systems

2002 Prentice Hall, Inc.

Anas Boutique Example

2002 Prentice Hall, Inc.

Anas Boutique Example

2002 Prentice Hall, Inc.

Anas Boutique Example

2002 Prentice Hall, Inc.

Revenues Expenses Net Income

100,000 60,000 40,000

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

Using the Sales Journal

Using the Sales Journal

Using the Sales Journal

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

Cash Receipts Journal Page 6

200 11 882 900

XYZ Company Jrnl. Date Ref. Jan. 2 S.5 11 CR.6

Subsidiary Ledger Debit 900 Credit 900 Balance 900 -0-

2002 Prentice Hall, Inc.

Cash Jrnl. Date Jan. 31 Ref. CR.6 Debit 1,882

No. 101 Debit Credit Balance

2002 Prentice Hall, Inc.

Cash Receipts Journal

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

2002 Prentice Hall, Inc.

Cash Disbursements Journal

2002 Prentice Hall, Inc.