Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition

Chapter 6

Recording Accounting Transactions

IN THIS CHAPTER

Getting an overview of the accounting process

Making entries in the journal

Transferring information to the general ledger

Making sure everything balances

Finding and fixing errors

Just like a coin has two sides (a head and a tail), an account has two sides (a debit and a credit). When your nonprofit makes a transaction, you have to record it in two or more accounts: the debit (the left side of an account) and the credit (the right side of an account). When you record the transaction in your accounting books, you’re making a journal entry.

This chapter touches on the basics, including the different types of accounting and an overview of the accounting process. With this information you can make journal entries, prepare a worksheet, make adjusting entries, and find errors in your books.

Explaining the Recording Process

You can’t enter transactions in your book work until you select a basis of accounting. Some industries ...