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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 + - Wamark Publishers © - -
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 + 500 - 500 = Wamark Publishers © Bank 500 How much does the Debtor owe after this transaction?
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 - 500 = 0 + - 500 Wamark Publishers © Creditors Control 500 Bank 500 How much is owed to the Creditor after this transaction? Trading Inventory 700 Creditors Control 700
The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL DRAWINGS ASSETS INCOME EXPENSES NOMINAL SECTION LIABILITIES.
You are the Accountant For every exercise you do, pretend that you are the accountant for the business. Wamark Publishers ©
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