2.Complete the following statements:

1. The balance sheet is _____ .

2. The accounting equation reads _____ .

3. All asset accounts are listed on _____ .

4. Assets that can be readily converted into cash are _____.

TEXT 9

1. Read and translate the text:

The journals

Under the manual double-entry system for recording data on past activities, transactions were first recorded in a general journal and then posted to ledgers. Actually, data may be recorded in multiple journals to facilitate posting, provide a means for dividing up the work involved in making the journal entries, improve control methods, and reduce the recording costs. The following are typical multiple or special journals used in recording data on past economic activities:

I. Sales journal.

2. Purchases journal.

3. Cash receipts journal.

4. Cash disbursements journal.

When special journals are established, transactions are recorded in the appropriate special journal rather than in the general journal. Thus, in recording past activities, all sales transactions, except sales for cash, would be recorded in the sales journal. All merchandise purchase transactions, except cash purchases, would be recorded in the purchases journal. Cash receipts transactions would be recorded in the cash receipts book, and cash disbursement transactions would be recorded in the cash disbursements book.

Accountants should be familiar with the use of multiple journals, but it must be understood that no standard form of multiple journals exists. In fact, various types of special journals should be developed for different purposes.

Columnar Journals. Use of the expanded or columnar general journal is a technique which saves time and effort in posting to ledgers. The columnar general journal has special columns for debits and credits to certain accounts. Posting is reduced because only totals for the month are transferred to the general ledger.

Notes to the text:

sales journal – журнал учета продаж, журнал обліку продажу

purchase journal – журнал учета покупок, журнал обліку закупівель

cash receipts journal – журнал кассовых поступлений, касовий журнал прибутків

cash disbursements journal – журнал кассовых выплат, касовий журнал витрат

multiple journals – многочисленные журналы, численні журнали

column – столбец, стовпчик

columnar – напечатанный в столбик, надрукований у стовпчик

2. Answer the questions:

1. Where may data be recorded?

2. What journals are usually used in recording data?

3. What accountants should be familiar with?

4. What technique saves time?

5. What columns do columnar journals have?

Text 10

1. Read and translate the text:

The ledgers

Although they are not the only sources, the ledgers are the primary sources of information for a variety of accounting reports on past ac­tivities. This means that the types of accounting reports rendered may depend upon the classification of the data in the ledgers. The accounts to be used in the ledgers, therefore, should be related to the types of information needed by managers and others. As a minimum, the ledger information on past activities should reveal the following:

1. Functions of the business, such as demand creation, order fill­ing, delivery, and the various activities of production.

2. Nature of object acquired or used, such as buildings, merchan­dise, and equipment.

3. Responsibility for expenditures, such as a departmental classifi­cation of expenditures by individuals.

The manual processing system represents the minimum disclosure of business activities; mechanical and electronic accounting process­ing systems often provide considerably more information. This addi­tional information may or may not be recorded in a formal ledger but it should be stored in such a manner that effective retrieval of it is possible.

Though the natural or object classification scheme dominates con­temporary accounting procedures, many companies interweave the functional and responsibility classifications to one degree or another into their ledger accounts. In general, a «chart of accounts» should be developed for each company to indicate the accounts to be used in re­cording data.

Subsidiary Ledgers. Under the manual processing system, data recorded in the journals are posted to the general ledger, and accounts such as «Equipment», «Accounts Receivables» and «Accounts Payable» appear there. In many instances, however, the general ledger ac­counts do not provide the detailed information needed. For example, «Accounts Receivable» and «Accounts Payable» do not disclose the customer from whom the receivable is due nor the creditor to whom the payable is to be paid. This deficiency in the general ledger is over­come by using subsidiary ledgers.

A subsidiary ledger for accounts receivable is typically a separate book containing a detailed record of the amounts owed and paid by each customer. In terms of the customary double-entry system, a sub­sidiary ledger may be defined as a detailed record of one of the gen­eral ledger accounts.

Notes to the text:

ledger - бухгалтерская книга, бухгалтерська книга

to render - формулировать, формулювати

retrieval – поиск, пошук

to interweave – перемещать, переміщувати

to post – делать проводки, робити проведення

deficiency – недостача, нестача