I have seen many new students find accounting difficult and confusing because they don't know the difference between a Benefits Ledger and Tag & Mapping Ledger.
For example, I ask a question and you tell me if the answer below is correct:
Hello everyone, thank you for joining us on bilateralinfo.com today. Our topic of discussion is the "Accountant's Role in Business Processes," focusing specifically on "Three key skills for excelling in Accounting." Let's dive right in and explore these crucial aspects together.
First I will give a brief explanation about Business process for new accounting students.
The fundamental purpose of a business is to procure goods or services (benefits) at a discounted price as much as possible and sell them with as much margin as possible to generate profit.
I hope you now have a basic understanding of business. Next, let's explore the role of accountants in this process.
Recording the company's benefits transfer details in accounting and calculating the company's discounts and margins are the primary tasks of accountants.
The first thing I tell students to do well in this assignment is "Know these three details well".
Generally, business transactions are divided into three types.(bilateral, unilateral, transfer entry) In fact, the recording process for these three transactions is the same, but the accounting impact differs. For instance, in the "unilateral benefits transaction" it is a credit transaction. Only when the accountant identifies it as a credit transaction can they decide whether to adjust this transaction against existing credit transactions or create a new one . Read More
The name of the benefit ledger is the first thing that anyone associated with the company will see in the accounting, so the name should be clearly created according to the nature of the benefit.
Benefits Ledger Types:( Trade benefits, Operation benefits, Levies benefits, Ultimate benefits, Personal account, Benefits account ledger)Read More
You create a benefit ledger, and you define where it should appear on the report.The defining process is called a tag.
For example, the tag is to determine whether office maintenance should be shown in the Profit and Loss under office expenses.
"Tag & Mapping are introduced in accounting to simplify access to accounting. However, it should be understood clearly that Tag & Mapping should only be used in statement accounts and not in journals."
I have seen many new students find accounting difficult and confusing because they don't know the difference between a Benefits Ledger and Tag & Mapping Ledger.
For example, I ask a question and you tell me if the answer below is correct:
Purchase an H3 mobile phone from Star Mobile Shop for $1000 on credit.
| Transaction Type | Account | Amount ($) |
|---|---|---|
| Debit | Purchase Mobile Phone | 1000 |
| Credit | Account Payable | 1000 |
What you are thinking, is it right or wrong?