W3

• Bookkeeping

  Refers to the recording of business transactions in the book of the business.
• Transaction

  Refers to the event where there are exchanges of values that are measurable in one common denominator.
• JOURNAL

  It is the book of original entry. It is where all business transactions are chronologically recorded for the first time.
• In case there is only one debit and one credit, the entry is called a simple journal entry.
• The journal entry appears to have two debit values, while credit has one value. This type of journal entry is called a compound entry.
• Bookkeeping or record keeping is performed every day. Bookkeepers, are expected to record the transactions of the business daily. At the end of the month, all the transactions will be grouped based on the nature or characteristics of the account. The accounting activity is called classifying.
• Ledger

  It is another book of accounts used to record business transactions and events. It is considered as the book of final entry.
• Footing

  The process of adding the debit and credit money columns of the ledger and finding their balances.
• After all the accounts in the ledger have been added and the balances have been computed, the next bookkeeping procedure is to prepare the trial balance. Trial balance is the listing of the debit and credit balances of accounts from the general ledger with the following purposes:

  1. To prove the equality of debit credit.
  2. To determine the nominal accounts to be closed.
  3. To serve as basis for making draft financial statement