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Balancing-off accounts Chapter 5. Debtors owe us nothing DrCrK.Tandy a/c Aug1 Sales144 19 Sales300 444 Aug22 Bank144 28 Bank300 444 In this account, the.

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Presentation on theme: "Balancing-off accounts Chapter 5. Debtors owe us nothing DrCrK.Tandy a/c Aug1 Sales144 19 Sales300 444 Aug22 Bank144 28 Bank300 444 In this account, the."— Presentation transcript:

1 Balancing-off accounts Chapter 5

2 Debtors owe us nothing DrCrK.Tandy a/c Aug1 Sales Sales Aug22 Bank Bank In this account, the customer (K.Tandy) is no longer a debtor, (she does not owe us any money now). So her account is balanced-off. We say her account is closed off.

3 Debtor still owes us DrCrK.Wood a/c Aug1 Sales Sales Sales Aug22 Bank This account does NOT balance. We need to balance-off the account

4 Debtor still owes us DrCrK.Wood a/c Aug1 Sales Sales Sales Aug22 Bank Find the difference between the two balances 2.Add the different on to the smaller side, so it will balance

5 Debtor still owes us DrCrK.Wood a/c Aug1 Sales Sales Sales Sep1 Balance b/d 324 Aug22 Bank 158 Aug31 Balance c/d Balance carried down Enter the balance here so the two sides equal Now the two sides equal Enter the balance here to start the next month

6 Debtor still owes us DrCrK.Wood a/c Aug1 Sales Sales Sales Sep1 Balance b/d 324 Aug22 Bank 158 Aug31 Balance c/d So the account shows us that K.Wood still owes us 324 The Balance c/d is the last day of the month The Balance b/d is the first day of the next month

7 We owe money to a creditor DrCrE.Williams a/c Aug21 Bank 100 Aug31 Balance c/d Aug2 Purchases Purchases Sep1 Balance b/d Find the difference between the two balances 2.Add the different on to the smaller side, so it will balance


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