kNOW The Basic of Accounting???

Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the company or organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. It varies greatly in its complexity and cost.

what is General Ledger (GL) ?
The general ledger is where all accounting transactions are posted in a double entry system using debits (on the left) and credits (on the right) for each transaction. An additional column to the far right can keep a running total of activity in the account, similar to your checkbook.

The debit and credit entries impact at least two ledger accounts and it is usual to capture enough information in each leg of the entry to be able to identify the other one. To extend the comparison to your checkbook, if you also had a register for the types of income and expenses you receive and pay, you could set up a general ledger for yourself.


The general ledger provides data for the Balance Sheet and either the Single-Step Income Statement or the Multi-Step Income Statement (depending on which one the company prepares.) The ledger can be electronic or physical depending on whether you are using computer software or a manual system. Most comapnies use a computerized version of the general ledger, allowing for greater ease of entry and reporting.

What is Accounts Receivable ?
who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established time frame called credit or payment terms.

What is Accounts Payable ?
is a file or account that contains money that a person or company owes to suppliers, but has not paid yet (a form of debt). When you receive an invoice you add it to the file, and then you remove it when you pay. Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.