Purchase test bank for saving your time

a.    Discuss the difference in the role of the journal and the ledger in capturing accounting information efficiently and effectively test bank.

The role of the journal is to summarise and classify transactions efficiently and effectively. Frequent transactions are recorded in separate journals such as the cash receipts journal and cash payments journal.  Infrequent transactions are recorded in the general journal. Ledger accounts (when used with journals) are used to record the summarised information from the journal (for example the totals are posted from the cash receipts and cash payments journal to the cash at test bank (account).

When used instead of journals, the ledger accounts record each transaction.  Both journals and ledger accounts enable financial statements to be more easily prepared textbook solutions.

b.    Outline the entity concept and how it impacts on the recording of personal and business transactions

The entity concept means that every entity is a separate accounting entity, separate and distinct from the owner and all other entities. The application of the entity concept means that every type of business structure i.e. sole trader, partnership, company and trust should keep their owner’s business transactions separate from their personal transactions. This means that the owner of a business should not include any personal assets on the entity’s Balance Sheet, as this statement must reflect the financial position of the entity alone. This also applies to personal expenditures of the owner which should not be included in the entity’s expenses in the Income Statement for test bank.

c.    Identify the type of errors that could be discovered by preparing a trial balance and provide examples of each.

The purpose of the trial balance is to assist in the preparation of financial statements and check the accuracy of the ledger or journal entries.  Examples of errors that could be discovered by preparing a trial balance are:

·    Only a single entry recorded and not a double entry for a transaction e.g. record purchase of motor vehicle increase, (Debit),  but do not show the loan associated with the purchase transaction, (Credit) side of textbook solutions is available.

·    The transaction entries have different amounts of textbook solutions e.g. purchase of motor vehicle 35 000 and loan 53 000.

·    Two DebitR or two CRedit entries. e.g. purchase of motor vehicle as a DR 35 000 and a DR to loan 35 000. Alternatively, both sides of the transaction as a CRedit

d.    Provide examples of two transactions and examine the application of the debit and credit rule. (4 marks)

For more details about test bank and other subjects simply visit here: