3. How can you ensure that credit and debit transactions are accurately recorded, in accordance with organisational requirements?
The most accurate and reliable method of record keeping utilises computer
software.
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When untrained people attempt their own bookkeeping, it’s usually the
Debits and Credits that mess them up.
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It’s called double-entry bookkeeping for a reason.
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When a transaction occurs, at least two accounts must be involved.
The general idea is to consider each transaction (or entry) as amounts that
will either increase or decrease specific accounts, i.e. your bank, revenue and
expense, etc. accounts.
Firstly, you will have or need to have a list of accounts known in accounting as
the Chart of Accounts.
Depending on the type of account, an increase can be a debit or a credit.
This is where it gets tricky. Therefore use the chart provided below as a guide