Other

• Transactions - daily

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  Source Documents - daily

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  Journal - daily

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  Ledgers - daily/monthly

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  Trail Balance - monthly

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  Year end adjustment
• Year end Adjustments are:

  • Fixing up the ledger
  • Adjustments must have a debit & credit
• There are 4 accounts involving year end adjustments:

  1. Accured Income
  2. Income Recieved in Advance
  3. Prepaid Expense
  4. Accured Expense
• Accured Income is an asset
• Accured Income is when somebody owes the business money
• Income recieved in advance is a liability and it is when someone pays the business in advance
• Prepaid expense is an asset and it is when the business pays in advance
• Accrued Expense is a liability that we have not paid