General Ledger complete project with interfaces and documentation

What is General Ledger? 

A book of final entry summarizing all of a company's financial transactions, through offsetting debit and credit accounts. General Ledger Accounting is the backbone of a small business accounting system. A General Ledger is, quite simply, a Chart of Accounts that includes all the activity in each account for a certain period. Each day you make entries in your Cash Disbursements Journal and your Cash Receipts Journal. At the end of the month, these entries are totaled up and ported (transferred) to General Ledger.  

The general ledger is the central core of the accounting information system where all of the financial transactions of a business are categorized and summarized into accounts. These accounts in the general ledger group similar transactions into individual records producing a continually updated credit/debit balance for each. The number and type of accounts that make up the general ledger are determined by the chart of accounts. The general ledger contains a permanent history of all the financial transactions that have taken place in the business since its first day of operation. 

Work Flow Description of General Ledger 

The general journal includes all the business transactions which are recorded chronologically, i.e. day by day. Structure and form of general journal differ depending on the business needs, however, there is a mandatory data to be present in any journal.  

   In the picture of the general ledger, you can see how the general journal looks like and what information is included there.  

Subsystem: 

The subsystem usually updates the general ledger that represents all transactions that occurred during a period. the subsystem described in creates a journal entry to update general ledger. 

In the revenue cycle, we record sales and all cash received .then we post these sales and cash receipts in the journal entry. 

             In the expenditure cycle, we record goods or services purchased which will not be consumed or used entirely in the current fiscal year.  Goods or services purchased for current use are shown as expenditures.in the expenditure cycle we buy goods and services and pay cash. then we post this information in a journal entry. The next step of this sample general ledger journal entry is to post these entries to the updating general ledger accounts, i.e. Cash and Revenue.  

Treasurer: 

The treasurers create individual journal entries to update the general ledger for the non-routine transactions.The investing activity and financing activity to update the general ledger. 

Controller: 

The next activity in the general ledger system is posting various adjusting entries to update the general ledger. these adjusting entries originate from the controller’s office. Adjusting entries fall into five basic categories;  

Accruals, Deferrals, Estimates, Revaluation, Correction.  

After all adjusting entries have been made; an adjusted trial balance is prepared. The adjusting trial balance serves as the input to the next step in the general ledger and financing cycle, the preparation of financial statements. 

External users: 

The other next activity in this diagram is preparing financial statements; this income statement is prepared first, using data from the revenue and expense account balance in the adjusting entries. The balance sheet is prepared next. this activity requires closing entries that zeroes out all revenue and expense accounts and transferring the net income or loss to updating the general ledger. 

Financial statements are prepared for external users who are customers and stakeholders to tell them where the organization stands and its progress.  

Financial statements are then sent to managers.  

Managers: 

The activity in this diagram is producing various managerial reports. Managerial reports have done by the budget plan and budget report. After viewing the financial statements budgets and managerial reports are prepared. These are then sent to budget directors. 

Budget Directors: 

A budget director prepares the budget plan using the managerial reports. 

USE CASE WITH CLASS DIAGRAM

TRANSACTION PATTERN OF GENERAL LEDGER

INTERFACES OF GENERAL LEDGER

Hi, I'm Hifsa Nazish           

           

  Full-time blogger, podcaster and side project. Join me here, on 

<script type="text/javascript" src="https://platform.linkedin.com/badges/js/profile.js" async defer></script>

uniqueblog91.blogspot.com