COMMERCE 1BA3 Lecture Notes - Weighted Arithmetic Mean, The Ledger, Trial Balance

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1BA3
• Professor: Teal Mc Ateer

Document Summary

Determine 25591 and direction (+ , -) Enter the amount of each account of the. Journal entry on the same side of the corresponding t account in the ledger. A business transaction is any transaction conducted in the course of business. An accounting transaction is an event that affects the financial position of an entity. The set of accounting transactions is a subset of business transactions. That is, all accounting transactions are business transactions, but not all business transactions are accounting transactions. You can identify a business transaction as an accounting transaction by identifying at least one affected element of financial statements. Transactions are recorded first in the journal in a chronological order. Each transaction affects at least two accounts (double entry). Each transaction has counterbalancing entries that keep total assets equal to total liabilities and owners" equity. That is, the accounting equation must be balanced after recording each transaction.