Other forms of bookkeeping
3
Apart from required financial statements, the following are forms of bookkeeping used for corporate financial management.
Titles
Amount
Titles
1,000
Amount
Cash
1,000
(2)General ledger
A “general ledger” in corporate accounting plays a fundamental role, as it
is necessary for settling accounts. It is a place to organize transactions into
accounting title. For example, 1,000 yen worth of office supplies purchased with cash would be recorded as follows.
Cash
Titles
Amount
Titles
Amount
Supplies Expense
1,000
Supplies expense
Titles
Amount
Cash
Titles
Amount
1,000
(3)Trial balance sheet
A “trial balance sheet” is a table showing the credits and debits for each
title of account, showing balance totals, without P/L or B/S sections. These
figures are used as a check when preparing financial statements.
Also referred to as “total trial balance sheet.”
Balance
Debit
Accounting title
700,000
1,300,000
Cash
600,000
150,000
500,000
Accounts payable
350,000
200,000
Accounts receivable
600,000
400,000
1,000,000
1,000,000
850,000
850,000
3,400,000
2,250,000
Capital stock
800,000
800,000
600,000
2,250,000
3,400,000
Accounting title
An “accounting title” is a journal item
that appears in a financial statement as
a title. These include cash, expenses,
product, accounts payable, accounts
receivable, etc.
“Accounts payable” is a term used for
purchases by the company, where payment is to be paid in the future; “accounts receivable” are purchases from
the company where payment is to be
received in the future.
Balance
Retained earning
Sales
600,000
Credit
Reference
Corporate and legal affairs
Supplies Expense
Chapter 1
(1)Journal book
A “journal book” is where all transactions are ordered and entered by
date, and every journal page is tabulated on a single statement. For example, 1,000 yen worth of office supplies purchased with cash would be recorded as follows.
Purchase
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