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

Transaction: The Debtor settles his account R 500 Assets Income Expense + - + + 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 = DR Bank(A) CR DR Debtors Control (A) CR Debtors Control 500 Current Income 500 Bank 500 How much does the Debtor owe after this transaction? Wamark Publishers ©

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 Creditors Control 700 Creditors Control 500 Bank 500 Trading Inventory 700 How much is owed to the Creditor after this transaction? Wamark Publishers ©