Accounting Information Systems pdf

Objective 2Understand both computerized and manual accounting systems... Computerized Accounting System entered, edited printed to paper, screen ACCOUNTING RECORDS Journals, Ledgers, Oth

Accounting Information

Systems

Chapter

7

Describe an effective

accounting information system Objective 1

ControlCompatibilityFlexibilityCost/benefit relationship

Basic Features

Basic Features

✔Internal controls are the methods and

procedures used to authorize transactions and safeguard assets

✔Compatibility means that the system works smoothly with operations, personnel, and the organizational structure

Hardware

Software

Computerized Accounting System

Computerized Accounting

System

✔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

Objective 2

Understand both computerized and manual

accounting systems.

Computerized

Accounting System

entered, edited

printed to paper, screen

ACCOUNTING RECORDS

Journals, Ledgers, Other records

SOFTWARE PROCESSING

PERSONNEL

input transactions, request

reports, protect records

REPORTS DATA

posted accessed for

reports HARDWARE

Designing an Accounting System

with the chart of accounts

their account number in the ledger

Menu-Driven Accounting

System

function or task

of processing options on a “menu.”

Use arrow keys to make choice.

Press <return> to access choice.

Press F7 <escape> to leave menu.

MAIN Inventory Utilities

Closing

Preparing Accounting Reports

Use arrow keys to make choice.

Press <return> to access choice.

Press F7 <escape> to leave menu.

REPORTS

Objective 3

Understand how spreadsheets

are used in accounting.

Integrated Accounting Systems

Ana’s Boutique Example

collections in the month of May

sales are collected in the month of sales and 50% the following month

Ana’s Boutique Example

during the month of May?

Ana’s Boutique Example

+ Collection of April’s credit sales 60,000

easier.

Formula for B4: =B2–B3

Cursor is on cell B4.

40,000

Objective 4

Use the sales journal, the cash receipts journal, and the accounts receivable

ledger.

Special Journals

one specific type of transaction

Sales Cash Receipts Payroll

Cash DisbursementsPurchases

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount Jan 2 201 Joe Co 120-122 ✓ 600.00 Jan 2 202 May Co 120-033 ✓ 700.00 Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount Jan 2 201 Joe Co 120-122 ✓ 600.00 Jan 2 202 May Co 120-033 ✓ 700.00 Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

Using the Sales Journal

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount

Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount

Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

General Ledger Account: Accounts Receivable Account Number: 120 Date Description Post Ref Debit Credit Balance Jan 2 Sales SJ5 2,200

Using the Sales Journal

Using the Sales Journal

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount

Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

Sales Journal Page 5

Invoice Account Account Post Date Number Debited Number Ref Amount

Jan 2 203 XYZ Co 120-111 ✓ 900.00

120/410

General Ledger Account: Credit Sales Account Number: 410 Date Description Post Ref Debit Credit Balance Jan 2 Sales SJ5 2,200

Subsidiary Ledger

details on individual balances of

A Control Account

✔It is the general ledger account

balances in a subsidiary ledger

Debits Credits Sales Accounts Sales

Date Cash Discounts Receivable Revenue Jan 2 200 200

11 882 18 900

30 800 800

311,882 18 900 1,000 (101)

(420) (112) (410)

Cash Receipts Journal — Page 6

Cash Receipts Journal

other account descriptions and amounts

ledger accounts are posted daily to keep

customer balances up to date

and post to the general ledger

Objective 5

Use the purchase journal, the cash disbursements journal, and the accounts payable

ledger.

Purchases Journal

of inventory, supplies, services, and other

assets on account

Cash Disbursements Journal

recorded in the cash disbursements journal

called:

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

recording repetitive transactions and posting

to the ledger

any of the special journals

General Journal

allowances and purchase returns in the

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 seller and credits Inventory

Balancing the Ledgers

in the general ledger are equal

sum of the appropriate subsidiary ledger

accounts

End of Chapter 7