FINANCIAL
TRANSACTIONS Aryan
Ahmadzai
AND HOW THEY
ARE RECORDED
,Unit 10: Recording financial transaction
Introduction:
1a) Explain the five stages of the accounting systems?
Introduction: In this section, I will be talking about the five stages of the
accounting system in greater detail.
- Financial Transactions: These are transactions that are made by both
the buyer and seller. An example of financial transactions is
somebody going to purchase a new TV.
- Financial Document: These are documents that have been
generated by the transactions. An example of financial documents
could include a cheque or an invoice.
- Books of prime entry: This is a place where all the
transactions/purchases are recorded in the books. An example of
books of prime entry is the cash books.
- Ledger accounts: It’s a book or collection of accounts in which
accounting transactions are recorded. For example, using the
double-entry system.
- Trial balance: An internal financial statement that lists the adjusted
closing balance of all general ledger accounts.
Conclusion: In conclusion, after the company goes through all of these
stages, they can finally use it in financial reports and the finalisation of the
records.
1b) Explain books of prime entry and documents involved in
completing them and why they are important in bookkeeping and
bookkeeping.
1
By Aryan Ahmadzai
, Unit 10: Recording financial transaction
Introduction to boos of prime entry:
Prime entry books are books of financial record in which financial
transactions rise arise when initially entered in a financial record, and then
posted in a book of prime entry, and then posted to a book of a ledger. All
books of prime entry handle a specific financial transaction and completed
with respective financial documents.
Different books of prime entry and source documents
2
By Aryan Ahmadzai
TRANSACTIONS Aryan
Ahmadzai
AND HOW THEY
ARE RECORDED
,Unit 10: Recording financial transaction
Introduction:
1a) Explain the five stages of the accounting systems?
Introduction: In this section, I will be talking about the five stages of the
accounting system in greater detail.
- Financial Transactions: These are transactions that are made by both
the buyer and seller. An example of financial transactions is
somebody going to purchase a new TV.
- Financial Document: These are documents that have been
generated by the transactions. An example of financial documents
could include a cheque or an invoice.
- Books of prime entry: This is a place where all the
transactions/purchases are recorded in the books. An example of
books of prime entry is the cash books.
- Ledger accounts: It’s a book or collection of accounts in which
accounting transactions are recorded. For example, using the
double-entry system.
- Trial balance: An internal financial statement that lists the adjusted
closing balance of all general ledger accounts.
Conclusion: In conclusion, after the company goes through all of these
stages, they can finally use it in financial reports and the finalisation of the
records.
1b) Explain books of prime entry and documents involved in
completing them and why they are important in bookkeeping and
bookkeeping.
1
By Aryan Ahmadzai
, Unit 10: Recording financial transaction
Introduction to boos of prime entry:
Prime entry books are books of financial record in which financial
transactions rise arise when initially entered in a financial record, and then
posted in a book of prime entry, and then posted to a book of a ledger. All
books of prime entry handle a specific financial transaction and completed
with respective financial documents.
Different books of prime entry and source documents
2
By Aryan Ahmadzai
