ACCOUNTANCY

Guidelines and Correct Journal Recapitulation

You have often heard the term journal recapitulation. Recapitulation is an important stage in the accounting cycle, without this stage, the recapitulation process will not run smoothly.

If there is an error in the recapitulation, the journal and bookkeeping cannot be entered into the general ledger. for this reason, it is important to recapitulate in accordance with the rules and regulations.

Those of you who are still new to this field can read the following explanation. That way, you can minimize the possibility of recording errors.

Understanding Journal Recapitulation

When explained in general terms, the recapitulation is a summary or the end of the report, it can also be referred to as the end of the count. In the world of accounting, journal recapitulation is the overall sum of each debit column.

When the recap process is carried out, the possibility of errors can be minimized. Moreover, when the summary is posted in a ledger, the final result is neat and organized. This method can also make the process of writing in the ledger easier.

Types of Recapitulation in Journals

There are several types of recapitulation in journal writing, so the recording process is also different. The following are types of recaps for journals that are often used, including:

Purchase Journal

The first is the recapitulation of the purchase journal, in which there are all purchase transactions. In addition, there are also transactions for goods, services, and credit. So that all transactions carried out by the company are recorded properly.

Sales Journal

Next is the journal for the sales section, in this section you must enter all sales transactions on credit. You have to be careful that no part is left behind.

Cash Disbursement Journal

Another type that is also often used in journal recapitulation is the cash disbursements journal. This section describes and records all transactions related to expenses or payments.

For example, journal recapitulation for purchases in cash, payments for production costs, making payments to the forest, taking cash personally, and so on.

Cash Receipts Journal

For this section, you can record all transactions related to receiving money. You also have to record the addition of funds to cash carefully. In addition, you can also write down money deposits into company accounts and others.

Jurnal Memorial

The last is a recap of the memorial journal, in this section all transactions that are not included in the previous four types are entered in the memorial journal. Some of the sections that you can include in this section are purchase or sale returns.

Transactions carried out internally within the company can also be included in this section. For memorial journal recapitulation, you can enter other types of transactions that were not included in the previous four journals.

Journal Recap Sharing

If you want to do a journal recap, there are several aspects that you should pay attention to. For example, by setting up a general journal and a special journal, the two must be assigned different account numbers.

After preparing the two journals above, you can create a table according to the recording that will be done. Then sort by accounts and transactions that have been made, then add up at the end.

When working on a journal recapitulation, you must ensure that the final amounts for debits and credits must be equal or in balance. If not, then you have to start counting from the beginning again.

Why Should You Do a Journal Recap

There are many benefits to doing a journal recap, for example, making it easier for employees or accountants to post the contents of financial journals within a certain time span. The following are some of the other benefits you will experience:

Knowing the Balance

When doing a journal recap, there are several balances that must be calculated. For this reason, a journal recapitulation is done, if the balance is not balanced, then there is a problem in the company’s finances.

If the balance ratio is the same, then the journal recapitulation is successful and has been done correctly. If it is confirmed that there are no errors, the results of the journal recap can be entered directly into the general ledger.

It is different if there is a problem when doing a journal recap, then the preparation is still wrong. If it is found where the error is, the company or accountant employee can immediately make corrections to the financial statements.

Identification of Transfer Proof

Another benefit that you can get is being able to identify the proof of transfer. Proof of transfer is important evidence because without it a transaction cannot be legally proven.

There are several proofs of transfers that you can include in the journal recapitulation, including receipts, invoices, memos, and others. Before starting to be entered into the general ledger, it is important to know each transaction and its evidence.

When you get proof of transfer, the company can immediately classify each transaction made. For example, divided by type, assetsdebt, and other capital.

In conducting the recap process, the accountant can determine whether the transaction is valid based on the available transfer evidence. If it does not match, then a search on the transaction will be carried out.

Posting to Ledger Easier

Next is the convenience you will get when posting to the ledger. Correct journal recapitulation will make the process of transferring all data can be done quickly and with minimal errors.

When calculating the journal recap in advance, the debits and credits obtained are balanced, making it easy to check and track. To post to the general ledger, the accountant would:

  • Record the time and number of transactions according to the data, whether debit, credit, or cash in.
  • The reference section column is filled in according to the account page number in the journal.
  • In the other reference column, the journal book is also filled according to the data in the recap account.

Get a More Complete Report

Not all companies require journal recapitulation, but generally, each company still makes journal recapitulation. When employees do the recording, the company can get benefits in the form of complete report data.

Generally, the results of the journal recap will be used as a routine evaluation or archive. In this way, companies can make developments related to their financial management.

How to do a Journal Recap

There are two ways that are often used to recap journals, namely:

Cara Manual

This method is rarely used because it is considered impractical. Journal recap writing using the manual method generally uses handwriting and books. This method usually takes a long time and the possibility of incorrect data input.

In addition, the manual recapitulation of journals can only be stored in a conventional way. Archives that are old are also prone to damage because they are stored in piles with other documents.

Cara Digital

The second way is the digital way, as the name implies, the digital way is a recap process that uses an application or software. Generally, all calculations can be done automatically.

The accountant only needs to input data according to the proof of transfer that they already have. This method is also faster because the data can be minimal errors. Its storage is also easier because it is stored digitally.

Journal Recap Planning Cycle

For those of you who are still new to the steps for recapitulating journals, here are guidelines that you can follow, including:

Recording All Transactions in the General Journal

The first step you can take is to record transactions in the general journal. In the accounting cycle, recording all transactions will make it easier for you to do calculations later.

For example, when a company spends cash to buy a new vehicle, the cash will decrease. The recording is then carried out, along with providing proof of transactions in that section.

If the company only makes transactions in small amounts, the recording of the journal recapitulation can be done in the general journal. However, if the number is large, then grouping must be done.

Classification of grouping can be done by distinguishing the transactions made. For example, dividing the transaction each week, the number of funds spent, and when the transaction was made.

Record in the Subsidiary Ledger

If you have, you can make notes in the subsidiary ledger, often referred to as the general ledger. This is the second step in the accounting cycle, the selection of subsidiary ledgers is intended to keep records neater.

By using a large account, the journal recapitulation can be done with debit or credit changes. Recordings in certain accounts, such as accounts payable or receivable, can be used as the basis for information in preparing a trial balance.

The way to recap will be easier by carrying out programs or applications that can support accounting activities. Not only is recording easier, but also settlement can be done easier.

Trial Balance

When all the balance planning has been done, you can prepare a trial balance. All accounts with debit balances will be in the left column, while credit balances will be on the right.

Because it uses ledgers and supporting documents, journal recapitulation must be done regularly. Generally, accounting activities can be done every week or every month. You have to make adjustments depending on the company.

Adjusting journal entry

The next part is to fill in the adjusting journal entries. These journals are journaled entries made at the end of the period only. Its function is to correct accounts before financial statements are made.

There are three types of adjusting journal entries available, namely prepayments, accruals, and non-cash disbursements. All these transactions must be properly recorded by an accountant.

Each entry used adjusts to income or expenses in the selected period. This concept will facilitate calculations when recapitulating journals.

Trial Adjustment

For those who are new to the trial balance, it is an adjustment to the list of all company accounts. The trial balance will only appear on the financial statements after the journal is complete.

There are two ways that are often used to prepare a trial balance, the type can be adjusted to your company. can be by posting the account to balance after adjustment, or using trial balance first without adjustment.

You have to make sure which accounts are included in the journal recapitulation because only active accounts are included in the trial balance. If the account only has a balanced number, you don’t have to include it on the trial balance.

Making financial reporting

Next is to make financial reports, including balance sheets, profit and loss statements, reports on retained earnings, cash flows, and others. Writing down each accounting cycle is the goal of a company’s financial accounting.

That way, it can be interpreted that the concept of financial reporting and the accounting cycle process only focuses on providing information. However, the information you provide must be clear and in accordance with the facts.

Creating Accounting Worksheets

Accounting worksheets are tools used to assist accountants in journal recapitulation. In addition, accounting worksheets can also be used to prepare year-end reports.

This worksheet serves to track every step of the accounting and trading company cycle. This document typically has five sets of columns starting with a trial balance account.

In other words, an accounting worksheet is a worksheet that shows all the accounting cycles. Every step and transaction, such as debit, credit, and the total balance must be calculated carefully.

Making Closing Journal

After all the entries are entered, along with the company transactions, you can make closing entries. Closing entries in journal recapitulation are only made after all temporary accounts are deleted and transferred to permanent accounts.

In the world of commerce, closing a journal is similar to closing a book. Temporary accounts, which are income statement accounts, are used to track activities over a certain period.

Unlike a permanent account, this account is an account created to track activities with longer durability. For example, the purchase of the company’s fixed assets, so that its use can last a long time.

Generating an Income Summary

The income summary account is the next section in the journal recapitulation. Its function is to store the balance of income statement accounts, income, expenses, and the closing of the accounting cycle.

So the summary account is only a substitute for the account balance at the end of the period. When closing entries have been made, the financial and accounting statements have entered the final section.

Trial Close Book

All accounts that have been calculated in the journal recap will be posted in the general ledger. In a journal recap, this activity is referred to as a closing trial balance, and is identical to the accounts in the balance sheet.

The closing trial balance in the journal recapitulation has been closed, as well as the company’s profit and loss within a certain period of time. So that there is no more running balance after the journal recap is completed.

The purpose of preparing this trial balance is to verify all accounts, both temporary and permanent. The total debits and credits that have been made in the accounting system have been neatly recorded and ready to be reported. Doing business bookkeeping can be assisted with features in accounting applications.

Tips in Making Journal Recapitulation

There are several tips that you can use to make a journal recap, including:

  • Do it regularly

If the company asks for a monthly journal recap, you should report regularly. You can make a report in installments once a week so you don’t get confused at the end of the month.

  • Ask for assistance

Managing and doing journal recapitulation requires good skills and abilities, so it is recommended that you ask for help. If there are seniors at your workplace, don’t hesitate to ask them.

  • Use Support Software

We recommend that you make a digital recap of the journal to facilitate work and archiving by utilizing  the accounting journal application . Currently, there are many applications that you can use for this purpose.

  • Check Well

In order to avoid errors in writing or calculating the journal recap, check when working. That way, you can minimize errors.

Those are the details regarding the complete journal recapitulation, I hope the above information can help readers. You can add information about journal recaps by reading supporting books with the same theme.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button