Chapter 3
Recording Transactions and Journal Entries
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.
Choosing Your Basis of Accounting
Your nonprofit’s basis of accounting is the method by which you account for things. Most organizations ...
Get Nonprofit Management All-in-One For Dummies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
