ACCOUNTING RECORDS Definition

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ACCOUNTING RECORDS are the records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers; journal entries and other adjustments to the financial statements that are not reflected in journal entries; and records, such as work sheets and spreadsheets, supporting cost allocations, computations, reconciliations, and disclosures.

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LEDGER is a book of accounts in which data from transactions recorded in journals are posted and thereby classified and summarized. The ledger is typically divided up into (traditionally physical separate books): a. Purchases/Creditors Ledger is the subsidiary ledger in which creditors accounts are recorded; also known as the bought ledger. Each creditors account is credited with purchases and debited with cash paid, discounts received and returns outward. The detail in the creditors ledger is summarized in the creditors ledger control account kept in the general ledger; b. Sales/Debtors Ledger is the subsidiary ledger in which debtors accounts are recorded; also known as the sold ledger. Each debtors account is debited with sales and credited with cash received, discounts allowed and returns inward. The detail in the debtors ledger is summarized in the debtors ledger control account kept in the general ledger; c. General/Impersonal Ledger is a book of final entry summarizing all of a companys financial transactions, through offsetting debit and credit accounts, e.g. liability, reserve, capital, income and expense accounts; and d. Private Ledger is confidential and records items such as capital, loans, mortgages, directors salaries and awards, etc.

PERSONAL LOAN is a short-term loan that is extended based on the personal integrity of the borrower.

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