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So I'm on an accounting course and I would be grateful if you could answer me this questions
1. Each entry in the journal can't have more that one operation or transaction. That is to say you can only make one entry per day with only one transaction. (This is what my teacher told me and I suspect that it's wrong)
2. When you register the credit or debit a particular account you should obviously include all the account affected but one particular entry should only include one trasaction. Thus if some different transaction happenes in the same day you should make a new entry with the same date in the date field.
This is what seems common sense to me but my teacher says it is wrong.
To exemplify let's sat that on the 20th the company buys some 120 I-beams, it pays 80 of them with money, 20 on account and 20 with equity. This would affect one account in supplies another one in cash another one in accounts payable and finally one in the company's stock.
Let's say that on the same day the company happens to sell some building. This event is a sperate event given that is has nothing to do with the above one. So the account affected and the corresponding credits and debits would be registered in a new entry with the same date.
Somehow my teacher, which I suspect is not a very good teacher, tells me that we can only register one entry per day.
I mean come on what happens then if more that two things happen? You just don't register? It's absurd.
3. New entries in the journals should be totaled with the sums of credit and debit written at the bottom. Teacher says that this is not the case
In the inventory cards you shouldn't write credits or debits. I thinks this varies from place to place.
5. You don't write descriptions of events and transaction in the journal, you know just the numbers and names of the accounts affected.
I searched in plenty of books but they always gloss over these details. (As if it was hard to include them. What's the point of a book on accounting if those things aren't in there?) I have found contradictory sources. Also my teacher told me that I was so wrong that due to some IFRS I would he would fire me if I was working for him.
Is he right?
Thanks!
1. Each entry in the journal can't have more that one operation or transaction. That is to say you can only make one entry per day with only one transaction. (This is what my teacher told me and I suspect that it's wrong)
2. When you register the credit or debit a particular account you should obviously include all the account affected but one particular entry should only include one trasaction. Thus if some different transaction happenes in the same day you should make a new entry with the same date in the date field.
This is what seems common sense to me but my teacher says it is wrong.
To exemplify let's sat that on the 20th the company buys some 120 I-beams, it pays 80 of them with money, 20 on account and 20 with equity. This would affect one account in supplies another one in cash another one in accounts payable and finally one in the company's stock.
Let's say that on the same day the company happens to sell some building. This event is a sperate event given that is has nothing to do with the above one. So the account affected and the corresponding credits and debits would be registered in a new entry with the same date.
Somehow my teacher, which I suspect is not a very good teacher, tells me that we can only register one entry per day.
I mean come on what happens then if more that two things happen? You just don't register? It's absurd.
3. New entries in the journals should be totaled with the sums of credit and debit written at the bottom. Teacher says that this is not the case
In the inventory cards you shouldn't write credits or debits. I thinks this varies from place to place.
5. You don't write descriptions of events and transaction in the journal, you know just the numbers and names of the accounts affected.
I searched in plenty of books but they always gloss over these details. (As if it was hard to include them. What's the point of a book on accounting if those things aren't in there?) I have found contradictory sources. Also my teacher told me that I was so wrong that due to some IFRS I would he would fire me if I was working for him.
Is he right?
Thanks!