Bookkeeping is more on clerical works for daily routine job.

There are THREE groups of users of financial statements

Lembaga Hasil Dalam Negeri (LHDN) is part of Internal users of financial statement

Managers is external user of financial statement.

Historical cost concept states that all assets must be recorded as MARKET PRICE at the time of acquisition

Under Objectivity Concepts, all transactions must be supported by evidence to make proper records.

Only transactions that can be measured by monetary value be recorded and presented in financial statements

The value of RM1,000 is considered as IMMATERIAL for company which has RM1 billion of share capital.

All accounting period of business entity must be ended on 31 December every year.

The liability of Sole Proprietorship is LIMITED.

Bank Statement is NOT one of source of documents.

Journal also known as books of first entry.

Invoice issued is indicates that the transactions were in CREDIT.

Credit Note is sent by seller to buyer in order to REDUCE the debts of buyer.

The memo is a reminder document to record transactions occuring between business owner with business

Sales Journal is used to record all CREDIT sales to customers

There are THREE types of Special Journals.

All sales by CASH is recorded in CASH PAYMENTS Journal

General Journal is to used any transactions that not belong to special journals and cash book.