lecture 9 accouting records -transaction processing- james a. hall book chapter 2
TRANSCRIPT
05/01/2023
Lecture 9- Accounting Records: TPS Chapter 2
Habib Ullah QamarGovt. college of Commerce Gujranwala
Transactions Transaction Cycles Cash flow of TPS Subsystems of Cycles The Expenditure cycle Conversion cycle Revenue cycle
Review of Last Lecture
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Today’s Topic Accounting Records Manual Accounting System Records Documents Journals Ledger Audit Trial Computer Based Systems Files and its types The Digital Audit Trail
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A document, voucher or journal (Hard or soft Copy) that is used as an evident of economic event in a transaction cycle is called Accounting record.
Manual System examples are…..? Documents Ledgers journals
Accounting Record
A document provides evidence of an economic event and may be used to initiate transaction processing. Example?
Voucher / receipt Some documents are a result of transaction
processing. Example? Bill etc Source documents, product documents And turnaround documents
Documents
Source Documents Documents being created at the beginning
(the source) of the transaction after an economic event occurred and used to capture and formalize transaction data that the transaction cycle needs for processing are called Source document.
For Example a customer order some products to buy, salesman collect the list of items and issue a sale order to sale department, Sales Order?
Product documents are the result of transaction processing rather than the triggering mechanism for the process.
For example, a payroll check to an employee is a product document of the payroll system.
Product Docments
Turnaround documents are those product documents that are used as a source documents for another system/subsystem.
It contains important information about a customer’s account to help the cash receipts system process the payment.
Cash receipts will match customer payments to the correct customer accounts.
Hence the bill issued by sales system is the input or source document for cash receipt system
Turn-around Document
Relation and Types of Cycles
A quiz
Type of Transaction cycle?
Type of Event?
Source Document?
ECONOMIC
Revenue
Sales Order
Quiz 2
Turn-Around Document
Find Source document, product document, and turnaround document
Source Document
Product Document
What is journal Special Register General journal
Journals
Definition Types General Subsidiary
Ledger
The accounting records discussed provide an audit trail/trace/follow for tracing transactions from source documents to the financial statements.
Of the many purposes of the audit trail, most important to accountants is the year-end audit.
While the study of financial auditing falls outside the scope of this text.
Read in Book…….
The Audit Trail
If you read Audit Trail of Manual system, you will find it less observable, but still this system is being used.
CBS stores the data and information of manual system in digital format in three different type of magnetic files.
Master File Transaction File Reference File
Computer Based System(CBS)
Master File : It contains account data previously stored in ledger.
Data values, also called accounting records, are updated with transaction Files.
Transaction File : used to change or update values stored in Master File. Examples?
Sales orders, receipts etc examples. Reference File: stores data that are used as
standards or reference for processing of transaction. Examples?
Customer List, Tax Rates, Price Lists, Archive Files: Records of Past Transaction
retained for future use.
Types of Files
CBS
Files?Dashed Lines
How you will define Accounting records? What is difference between Economic and
non-economic Transaction? Try to enlist achievements of computer
based system as compared to Manual System.
A bill generated by sales system is a …………………….documents.
What is symbol used for system in diagrams?
Text Quiz
Documentation Techniques…Chapter 2 Data Flow Diagrams Entity Relation Diagram Flow Charts Pre-reading will be appreciated and will give
you more benefit…
Future topic
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Thank you , take careSee you again in sha ALLAH