Exam (elaborations)
BUSINESS STUDIES, Bookkeeping Questions and Answers 2024
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BUSINESS STUDIES, Bookkeeping
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BUSINESS STUDIES, Bookkeepingbookkeeping - answer Bookkeeping is the recording of all financial transactions, and is
part of the process of accounting in business.
There are several methods of bookkeeping, such as the single-entry bookkeeping
system and the double-entry bookkeeping system, but, while they may be thought of as
"real" bookkeeping, any process that involves the recording of financial transactions is a
bookkeeping process.
transactions - answer Transactions include purchases, sales, receipts, and payments by
an organization with different customers and suppliers.
double-entry bookkeeping - answer Recording all transactions in two places so you can
check one list of transactions against the other for accuracy.
process of bookkeeping - answer Bookkeeping records are entered into books called
books of prime entry and ledger accounts. Together they will provide a complete record
of every transaction a business has and every $/kr it has earned and every $/kr it has
spent or owes to other people and organizations.
Accounting - answer Accounting is the skill and process of using bookkeeping records
of a business to prepare financial statements about its financial health and performance.
It involves planning, recording, analyzing, and interpreting financial information.
In simple terms, bookkeeping is the first step in an accounting system of a business.
THE PROCESS OF WRITING UP THE BOOKS - answer Everyday - Business
documents are issued and received
At the end of each day - Details are recorded in date order in the books of prime entry
At the end of each week or month - Journal entries are posted to ledger accounts
BOOKS OF PRIMARY ENTRY - JOURNALS - answer The record of invoices, receipts,
checks and other documents showing business transactions are entered into books
known as journals in the date order.
A business might have several journals such as purchases journal, sales journal, cash
book, general journal, etc.
These days its computer program who take care of all these different journals/ledgers
simultaneously.
Ledger - answer The records from books of primary entries (journals) are transferred
periodically into more organized form to make accounts more systematic into the ledger.
Usually a business will open and maintain a seperate account in its ledger for each type
of asset it owns, each expense it incurs and so on.
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