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You are the Accountant For every exercise you do, pretend that you are the accountant for the business. Wamark Publishers ©
The General Ledger Format of the General Ledger Balance Sheet Section Nominal Section DEBIT DR CREDIT CR This looks like a “T” so it is also called a T account Bank B3 Stationery N4 Stationery 100 Bank 100 Double Entry Rule Wamark Publishers ©
The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL (O/E) DRAWINGS (O/E) ASSETS (A) INCOME (I) EXPENSES (E) NOMINAL SECTION LIABILITIES (L) + - Wamark Publishers © - -
Owner’s Equity (O/E) The Owner The money used to start up a business is called Capital. The owner lends the Capital to the business. The owner can increase his/her capital contribution at any time. Capital is an Owners Equity Account. The Capita l is banked into the business bank account Owner’s Equity increases when the owner makes a capital contribution Capital + Wamark Publishers ©
Owner’s Equity The two Owner’s Equity Accounts are: Capital and Drawings Transaction: The owner makes a capital contribution of R Capital Drawings Assets + DR Capital (O/E) CR DR Bank (A) CR Bank Capital Effect on Accounting Equation Capital increases Owner’s Equity. Bank is an Asset that increases when a capital contribution is made. A = O/E + L = The owner may contribute capital as many times as he/she wishes. Wamark Publishers ©
Owner’s Equity (O/E) The Owner The Owner withdraws money form the business bank account for personal use - Drawings When the Owner draws money from the business bank account for his/her own personal use e.g. to go on holiday, it is called drawings. Drawings is an Owners Equity Account. Owner’s Equity decreases when the owner makes a drawing Wamark Publishers ©
Owner’s Equity The two Owner’s Equity Accounts are: Capital and Drawings Transaction: The owner drew R for personal use. Capital Drawings Assets DR Drawings (O/E) CR DR Bank (A) CR Drawings Bank Effect on Accounting Equation Drawings decreases Owner’s Equity. Bank is an Asset that decreases when a drawing is made. A = O/E + L = The owner may make drawings as many times as he/she wishes. Wamark Publishers ©
Unit # 3 – Recording Transactions in T-Accounts. We will now learn that when dealing with balances in All Accounts, you will need to know: Debit means.
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Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights.
CHAPTER 5. EXPANDING THE LEDGER Capital – The amount the owner invests in the business. Revenues – related to the sale of goods or services (i.e. fees.
High Frequency Words List A Group 1. the of and.
1. Record a trial balance on a worksheet. 2. Complete the worksheet. 3. Prepare the income statement, statement of owners equity, and balance sheet from.
Identify all items (assets and liabilities) that must be changed and make all necessary changes. Carefully analyze the information given for any transaction.
Welcome to... A Game of X’s and O’s. Rules Only one person is asked and can answer NO NOTES Go around the room in order 3 in a row wins the game If no.
Business Transactions and the Accounting Equation Making Accounting Relevant Every business has assets, liabilities (debts), and owner’s equity. Think.
1 RECORDING TRANSACTION TO GENERAL LEDGER To simplify of recording transaction in a company needs a basic procedure To Process of recording transaction.
Accounting and Financial Reporting Back to Table of Contents.
Prof Seema Chakrabarti Preparing books of Accounts…..
Chapter 7 Accounting Information Systems Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
CHAPTER 11 RECORD KEEPING AND ACCOUNTING February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of keeping business records.
Revenues & Expenses Other Terms Review Potpourri $100100$100100$ $200200$200200$ $300300$300300$ $400400$400400$ $ Dr/Cr.
Investing and Financing Decisions and the Balance Sheet Chapter 2 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
1 Accounts Questions Introduction to Business Accounting Week 4.
Can you see?. I like him. When will we go? All or some.
Demonstration Problem Chapter 4 – Exercise 11 Record Transactions and Adjustments Accounting What the Numbers Mean 10e.
IEEE Region Winter Workshop Accounting 101 Double Entry Bookkeeping & GnuCash Al Reinhart Worcester County Section (
By: Miss Siti Norhidayah Hamid. The profit & loss statement is a financial statement. It is used as the primary means of evaluating the economic performance.
The. of and a to in is you that it he for.
© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin THE ACCOUNTING CYCLE: Capturing Economic Events Chapter 3.
High-Frequency Phrases First 100 Words. The people.
Lets build fluency! The people By the water You and I.
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