There are a number of forms that bookkeepers use on a daily basis. Some of the most important forms are the general journal, general ledger, balance sheet, and statement of profit and loss.Continue Reading
The general journal is the main bookkeeping journal. It is used to record details of all daily transactions. It shows the date, description and amount of both the debits and credits.
The general ledger is the main bookkeeping ledger. Each page of the general ledger represents one account in the chart of accounts. The details of the transactions that were posted in the general journal are transferred to the general ledger under the appropriate account.
Bookkeepers use a balance sheet to provide a quick look at the financial condition of a business. It lists the values of the assets and liabilities that have accumulated since the start of a business. It also shows the equity of the business, which is the assets minus the liabilities. It is usually prepared at the end of a financial year.
A profit and loss statement shows whether a business has earned a profit or a loss for a certain period of time. It shows the income for the set period, and it subtracts the cost of sales and the expenses to produce the profit or loss result.Learn more about Accounting