General Ledger Account Analysis

Posted by Ana Orwel on Tuesday, April 28, 2009

The double entry system followed in the general ledger pays off during the general ledger account analysis. The general ledger tends to incorporate time as an element to the whole accounting process. This is why the general ledger is structured in 4 ways:

a) Accounting time
b) Order of liquidity
c) Account number
d) Accounting periods

Accounting period allows comparing two different accounts and at the same allows the comparison of the same account with itself over a period of time. This uses to detect the unusual changes in the balances.

General ledger account analysis usually includes exploration of the entries which were posted to the particular account during the accounting period. This exploration includes analysis of entry date, essence of entry and other information.

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Accounting Internal Cash Controls

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Accounting internal cash controls are one of the main tasks which the accountant has to perform to control cash the business posseses.

There are many methods by which this task can be performed. One of the challenges which the accountants face is the recurring expense that takes place in the company. These are small expenses which need to be recorded properly before the books are closed and financial reports are prepared.

To control cash the common thing is to keep a Petty Cash Book for each department. In this book the respective departments maintain there transactions and at the end of the month the chief makes the entries for those transactions in the final books. This is very effective as the respective departments are given a certain amount of cash to meet all their expenses.

More on accounting basic go to www.bookkeeping-financial-accounting-resources.com

Accounting Accruals Articles

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Accrual method of accounting analyses the position and performance of a company irrespective of the cash transactions that take place. In this method the expenses and revenues of a company are compared irrespective of whether the payments are made or not. So, it helps in projecting the exact financial position of a company by taking into account the current revenues and expenses as well as the future revenues and expenses.

Accounting accruals articles explain in more detail the essence of accrual principle and provide practical examples so you can understand the concept easier.

Find more information on accrual principle of accounting and accounting basic on www.bookkeeping-financial-accounting-resources.com

Free Online Accounting Courses

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There is a deluge of free online accounting courses who give online training on accounting. These courses can be availed by students, business owners and professionals. The modules of these courses are very well designed and provide a detailed knowledge about accounts. One can avail the basic and the advanced courses according to ones needs.

A little care needs to be taken while choosing the free online accounting course because not all the accounting courses are effective.

You can start learning accounting basic today with our online accounting course, click here to learn more…

Free Bookkeeping Training

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It is very important to have a sound knowledge about bookkeeping when one manages his own business or is an accounting professional. Bookkeeping can become a real headache if one doesn’t have good grasp over this aspect of business.

To help all such people out of their problem, a variety of free bookkeeping training online are available today. These courses can be accessed from your home or office and even the timings are also flexible. The training materials are divided into basic and advanced modules. One can choose the training module according to the needs and experience. The bookkeeping training can provide you with knowledge of tax, payroll, financial statements, debits and credits and much more. That is why these free bookkeeping training materials are one of the best form of gaining bookkeeping knowledge.

Start learning bookkeeping with us today, click here for more information.

Free Bookkeeping Basics

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It is very important to have good knowledge about bookkeeping if you want to be a professional in the field of accounting or run your own business.

You can do it with free bookkeeping basics, since there are a lot of online courses available for free and provide basic as well as advanced tutorials on bookkeeping. You will get to learn about tax fundamentals and analyze the reports generated by the data from the books.

The basic courses are really well designed and can help you have a sound grasp on accounting. This in turn will help you to maintain the accounts of your business in a proper manner. These courses have proved to be a boon for professionals as well as students.

Learn bookkeeping basics with our free online course.

Free Accounting Study Guides

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It is really helpful to learn basic bookkeeping and accounting in order to become a professional in the field of accounting as well as manage the accounts of one’s own business. To help people learn basic or advanced accounting, there are a lot of free accounting study guides available online for.

These free accounting study guides will help you to gain particular accounting and bookkeeping knowledge, but all delivered at your doorstep. These also help you to maintain a flexible studying schedule, but without compromising with the quality of tutorial. These accounting study guides are suitable for professionals as well as students.

Learn accounting basic with our free online accounting basic course online.

Free Accounting Help

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Bookkeeping is one of the most time consuming jobs and it is really tough to do that in a very systematic order. But there is accounting help in the form of online accounting where two components are put to use.

Accounting software is one component and the other component is a remote bookkeeper.

Though one can work with one single component, but the use of two can yield better results. There are a lot of service providers for remote bookkeeping and a firm can avail them at any point of time to lessen their bookkeeping burden.

Before selecting accounting software and accountant it is recommended to leran some of the accounting basics to understand the requirements for the accounting software and skills of the accountants.

On www.bookkeeping-financial-accounting-resources.com you can find plenty of free accounting help and information to understand accounting basic.

Fixed Assets Gain On Trade In

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Before explaining what is fixed assets gain on trade in, let us understand that irrespective of nature and type of business, there are two types of assets:

• Current Assets and
• Fixed Assets.

Current assets are those assets which can be easily turned into cash within a period of generally say one year. Fixed Assets are those assets which can be touched, felt and can be seen. The benefits of fixed assets can be derived more than one accounting period i.e. the benefit can be derived for more than 12 months.

Fixed Assets are held by the business for more than one accounting period. Fixed Assets may be of 2 types:
1. Tangible Assets
2. Intangible Assets

Examples of Fixed Assets are: Plant & Machinery, Furniture, Premises, and Vehicles Etc.

When talking about fixed assets gain on trade in, we should calculate the gain on the sale of the particular asset item. In the accounting books of business fixed assets are accounted for at cost value less accumulated depreciation. Therefore gain on the sale of fixed assets is a difference between sales price the business receives for the sale of the asset less net book value of this asset, i.e. the difference between cost and accumulated depreciation.

Find more information on accounting basic including fixed assets accounting.

Example Of General Ledger

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General ledger is the core book where all the financial transactions of a company are recorded. The general ledgers are maintained by the companies that have a double entry bookkeeping system.

General ledgers are made from the subsidiary ledgers like cash daybook, sales daybook, purchase daybook and general journals daybook etc. Example of general ledger includes are traveling a/c, salary a/c etc.

A sample general ledger is given below:

A sample traveling a/c as entered in the general ledger:

                             Amt.            Dr.                    Amt.        Cr.
March 5                To cash        500

March 7                To Bank        900

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