Source Document- A paper prepared as evidence to
support a business transaction. Examples of source documents are: invoices
(purchases and sales), receipts, memorandums, deposit slips, check stubs, cash
register tapes, payroll time cards.
The Journal is the book of original
entry.
Two column journal is an all purpose journal which can be used
by a business having simple operations and limited transactions.
Journalizing is the process of recording a business transaction
in the journal.
Posting is the process of transferring the data
from journal to the ledger.
The Ledger is the book of final entry.
The Trial Balance is the listing of all the accounts
in the general ledger and the sum of the debit and credit amounts of their
balances.
Chart of Accounts is a listing of all accounts and
their account (code) number used for journalizing business transactions.
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