1. Accounting
Chapter 3 Vocabulary

2. Journal A form for recording transactions in chronological order
What is the benefit of recording transactions in chronological order?

3. Journalizing: The process of recording transactions in a journal Entry: Information for a single transaction

4. General Journal General Journal
A journal with two amount columns in which all kinds of entries can be recorded
General Journal
Page: n
Date
Account Title
Doc. No.
Post Ref.
Debit
Credit mm yy
Debit Account
Source
Chpt. 4
0000. 00
Credit Account

5. Double Entry Accounting
The recording of the debit and credit parts of a transaction
Each transaction affects at least two accounts

6. Source Document
A business paper from which information is obtained for a journal entry.
A source document provides proof that the transaction occurred.

7. Types of Source Documents
Check (C): A business form ordering a bank to pay cash from a bank account

8. Types of Source Documents
Invoice (I): A form describing the goods or services sold

9. Types of Source Documents
Sales invoice (S): A source document for recording a sale on account

10. Types of Source Documents
Receipt (R): A business form giving written acknowledgement for cash received

11. Types of Source Documents
Memorandum (M): A form on which a brief message is written describing a transaction

12. Types of Source Documents
Calculator Tape (T) – Summary of cash receipts for a given day

13. Source documents provide proof that a transaction occurred
Why are source documents important?