BUSS1030 Lecture Notes - Lecture 3: Rio Tinto Group, General Ledger, Cash Register

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Forensic accounting when they can"t look at source documents and looks at other places for source documents. To record in a journal: identify transaction from source documents, undertake transaction analysis, specify accounts affected, apply debit / credit rules, record transaction (with description). For t account and bringing closing balance forward to opening balance: permanent account assets, liabilities and owner"s equity eg. cash at bank account. Temporary accounts revenues, expenses, drawings, dividends eg. interest expense: taking everything from revenue, take everything from expense, everything from dividends and put it into profit. Whatever is left is brought forward: not bring revenue/balance forward, bring profit forward, retained profit profit you keep. Trial balance: purpose: tells you if anything is wrong if debits doesn"t = credits, balances come from ledger, after posting journals to ledger trial balance is prepared to check that the general ledger balances debit = credit.