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The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL DRAWINGS ASSETS INCOME EXPENSES NOMINAL SECTION + - + + + + LIABILITIES.

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Presentation on theme: "The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL DRAWINGS ASSETS INCOME EXPENSES NOMINAL SECTION + - + + + + LIABILITIES."— Presentation transcript:

1 The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL DRAWINGS ASSETS INCOME EXPENSES NOMINAL SECTION LIABILITIES + - Wamark Publishers © - -

2 Transaction: The Debtor settles his account R 500 Assets Income Expense DR Bank (A) CR DR Debtors Control (A) CR Current Income 500 Debtors Control 500 Effect on Accounting Equation Bank is an Asset which increases when a payment is received from a Debtor. Debtors Control is also an Asset which decreases when a payment is received from a Debtor. A = O/E + L = Wamark Publishers © Bank 500 How much does the Debtor owe after this transaction?

3 Transaction: Pay a Creditor R 500 Assets Income Expense Liabilities DR Bank (A) CR DR Creditors Control (L)CR Effect on Accounting Equation Bank is an Asset which decreases when making a payment to a Creditor. Creditors Control is a Liability which also decreases when a payment is made to a Creditor. A = O/E + L = Wamark Publishers © Creditors Control 500 Bank 500 How much is owed to the Creditor after this transaction? Trading Inventory 700 Creditors Control 700


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