Dada Adefolami

Double-entry bookkeeping, in accounting, the double entry system of bookkeeping is based on the fact that every transaction has two parts: both a positive and negative entry, and will affect two ledger accounts.
1. Receivables may refer to a company’s claims to the future collection of cash, other assets, or services. These are frequently classified as:
o Accounts receivable, receivables resulting from the sale of goods or services on account.
1. Accounts receivable is a legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services rendered in execution of the customer’s order. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset.
o Accounts receivable are amounts that customers owe the company for normal credit purchases. Since accounts receivable are generally collected within two / Three months of the sale, they are considered a current asset. Also Accounts receivable is a legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services rendered in execution of the customer’s order Accounts receivable usually appear on balance sheets below short-term investments and above inventory
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o An accountspayable is recorded in the AccountPayable sub-ledger at the time an invoice is vouched for payment. Vouchered, or vouched, means that an invoice is approved for payment and has been recorded in the General Ledger or AP sub ledger as an outstanding, or open, liability because it has not been paid
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o Ledger accounts use the T-account format to display the balances in each account. Each journal entry is transferred from the general journal to the corresponding T-account. The debits are always transferred to the left side and the credits are always transferred to the right side of T-accounts.

An accounting information system (AIS) is a system of collecting, storing and processing financial and accounting data that is used by decision making

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.

Dada Suraju Adefolami, Professor of Finance, School of Business Administration, UNEM University Costa Rica, is a Finance / Management Consultant and Certified Forensic Accountant. You can reach him via: [email protected]; 08052043855