Accounting Information

Systems
A look at this topic

▪ SYSTEM PRINCIPLES
▪ SYSTEM COMPONENTS
▪ SPECIAL JOURNALS IN ACCOUNTING
▪ TECHNOLOGY-BASED ACCOUNTING
SYSTEMS
 SYSTEM PRINCIPLES
ACCOUNTING INFORMATION SYSTEMS collect and process data from
transactions and events, organize them in reports, and communicate results to
decision makers.
Five Principles of Accounting Systems:
▪ Control Principle
▪ Relevance Principle
▪ Compatibility Principle
▪ Flexibility Principle
▪ Cost-Benefit Principle
SYSTEM COMPONENTS

Five Components of accounting systems:

• Source Documents
• Input Devices
• Information Processors
• Information Storage
• Output Devices
 SPECIAL JOURNALS IN ACCOUNTING
Basics of Special Journals
A SPECIAL JOURNAL is used to record and post transactions of similar type.
SPECIAL JOURNALS are efficient tools in helping journalize and post transactions
SUBSIDIARY LEDGER – is a list of individual accounts with a common characteristic. It
contains detailed information on specific accounts in the general ledger.
Account Receivable Ledger – stores transaction data of individual customers.
Account Payable Ledger – stores transaction data of individual suppliers.
SALES JOURNAL – is used
to record sales of inventory on
credit.
Sales Taxes
CASH RECEIPTS
JOURNAL – is typically
used to record all
receipts of cash.
- Cash from credit
customers in
payments of their
accounts
- Cash from cash sales
- Cash from other
sources
PURCHASE JOURNAL
– is used to record all
credit purchases,
including those for
inventory.
CASH DISBURSEMENT
JOURNAL (CASH
PAYMENTS
JOURNAL)– is used to
record all cash
payments.