Journal and Ledger DR CR

Format of Journal Date Particulars L/F Debit Amount Credit Transaction date Name of Account to be Debited Dr Name of Account to be Credited Cr (Narration--------------------)   Activity #17-20

a) Purchased goods at $6000 on credit from ABC Ltd on 26 November 2000. Debit Credit Date Particulars $ Journal Entry 2000 Nov 26 6000 Purchases DR 6000 Creditors-ABC CR (Purchases on Credit worth $6000 from ABC Ltd.)

b) Sold goods at $9000 on credit to PCK Ltd on 8 July 2000. Debit Credit Date Particulars $ Journal Entry 2000 July 8 9000 Debtors-PCK DR 9000 Sales CR (Sales on credit worth $9000 to PCK Ltd.)

c) The firm incurred the following expenses: 19 March - Rent $2000 8 May - Wages $10,000 Journal Entry Debit Credit Date Particulars $ 2000 Mar 19 2000 Rent expense DR 2000 Cash CR (Rent paid of $2,000.) 10000 May 8 Wage expense DR 10000 Cash (Wages paid of $10,000.)

d) The firm received the following revenues: 27 March - Rent $3000 19 June - Interest $500 Journal Entry Debit Credit Date Particulars $ 2000 Mar 27 3000 Cash DR 3000 Rent received CR (Received rent of $3,000.) 500 June 19 Cash DR 500 Interest revenue CR (Record interest revenue of $500.)

e) The firm returned some damaged goods to supplier (ABC) worth $2000 on 10 July. Journal Entry Debit Credit Date Particulars $ 2000 July 10 2000 Creditors-ABC DR 2000 Returns Outwards CR (Record returns outwards of $2,000.)

f) A customer, XYZ returned some damaged goods to the firm worth $1500 on 8 August. Journal Entry Debit Credit Date Particulars $ 2000 Aug 8 1500 Returns Inwards DR 1500 Debtors-XYZ CR (Goods returns inwards of $1,500.)

It is common for the owner to draw money or goods from the firm for personal use anytime. According to the Accounting Entity Concept, we must record the event even though he is the owner of the firm. What do you call this? Click me! Drawings

The owner withdrew goods worth $2000 for his personal use on 10 April 2000. Debit Credit Date Particulars $ Journal Entry 2000 April 10 2000 Drawings DR 2000 Purchases CR (Drawings of goods worth $2000 for personal use )

h) Discount Allowed to customer XYZ $50 on 1st September 2000 Journal Entry Debit Credit Date Particulars $ 2000 Sept. 1 Discount Allowed Dr 50 50 Debtor- XYZ Cr (Discount allowed to customer)

i) Discount received from supplier ABC $20 on 1st July 2000 Journal Entry Debit Credit Date Particulars $ 2000 July. 1 Creditor- ABC Dr 20 Discount Received Cr 20 (Discount received from creditor)

j) Depreciation charged on furniture $ 45 on 30th. September 2000 Journal Entry Debit Credit Date Particulars $ 2000 Sept. 30 Depreciation Dr 45 Furniture Cr 45 (Depreciation charged on furniture)

Journal General Journal Subsidiary Books Record general transactions only: other than Purchase /Sales of goods, Returns Inward/outward, Cash/Bank General Transactions include: Assets purchase or sale on credit, adjustments for :Discounts, Depreciation, Rectifications of errors, accruals etc. It is in Journal format only Record specific transactions in specific subsidiary Book Sales Day Book Purchase Day Book Sales Return Day Book Purchase Return Day Book Cash Book Bank Book Each Subsidiary Book has different format

Formats of Subsidiary Books Format of Purchase Book (Day Book) Date Suppliers Name Invoice No. L/f. Gross Amount   Total Activity# 15 pg 166-167 Format of Sales Book (Day Book) Date Customers Name Invoice No. L/f. Gross Amount   Total Activity# 14 pg 160-161

Formats of Subsidiary Books Format of Purchase Return Book (Day Book) Date Suppliers Name Debit Note No. L/f. Gross Amount   Total Activity# 16 pg.178-179 Format of Sales Return Book (Day Book) Date Customers Name Credit Note No L/f. Gross Amount   Total Activity# 16 pg.178-179

Pg. 178 of Text Book

Purchase Day Book Date Supplier’s Name Invoice No Folio £ Gross Amount Folio 20X7 £ May 1 F. Bean 324 May 4 A. Clerk 216 B. Lock 322 64 F. Turner 130 G. Grill 140 May 10 B. Lock 230 May 18 J. Top 310 I. Grey 405 F. Low 180 P. Able 174 May 31 F. Turner 230 T. Burns Total transferred to Purchase Account 2725

Return Outward Day Book Debit Note No Date Folio Gross Amount Supplier’s Name 20X7 £ May 7 F. Bean 56 28 May 25 A. Clerk 140 I. Grey 34 B. Lock Total transferred to Return Outward Account 258

Sales Day Book Date Customer’s Name Invoice No Folio £ Gross Amount £ 20X8 June 10 B. Dock 240 M. Ryan 126 G. Soul 94 F. Trip 107 June 6 P. Coats 182 L. Job 203 99 T. Mann June 20 B. Uphill 1,790 302 June 30 T. Kane Total transferred to Sales Account 3,143 Pg. 178 R. Question #16.2A

Return Inward Day Book Credit Note No Date Customer’s Name Folio £ Gross Amount Customer’s Name Folio 20X8 £ June 10 B. Dock 19 32 F. Trip June 24 L. Job 16 Total transferred to Return Inward Account 67 Pg. #178 R. Question #16.2A

Cash Book (Single Column) Dr Cash book Cr Date Receipts Details Folio Amount Payments Details   Activity #22-26

Cash Book (Double Column) Dr Cash book Cr Date Receipts Details Folio Cash Bank Payments Details   Activity #13.5 pg.139 -140 Review Questions pg. 150 (13.1 &13.2)

Cash Book Dr Cr C C C C £ £ £ £ Capital Rent 135 M. Boon 315   Dr Cr Date Receipts Details Cash £ Bank £ Payments Details Cash £ Bank £ Folio Date Folio 20X8 20X8 Capital 10,940 Sept. 4 Rent Sept. 1 135 Sept. 2 M. Boon 315 Sept. 4 Cash Sales 802 Cash C 50 Bank C 50 Sept. 7 Sept. 7 Cash Sales S. Wills Sept. 15 490 Sept. 23 277 Cash Bank C Sept. 29 C 120 120 Sept. 29 Wages Sept. 30 518 Balance C/d Sept. 30 219 11,398 Total 922 11,795 Total 922 11,795 Oct. 1 Balance C/d 219 11,398

III CLASSIFYING Classifying Business Transactions : Postings in Ledger from the Books of prime entries: All Transactions which are recorded in the Books of Primary Entries in chronological order are then classified in different Accounts in a Book called Ledger which is a Book of Secondary Entry The transactions are posted (transferred) from Books of Prime Entries to Book of Secondary Entry –Ledger. Each transaction is posted in the respective accounts opened in the Ledger.

Balancing of Ledger: Find out balance in the ledger Account after posting all the transactions in the ledger accounts. Balancing can be done yearly/half yearly/ quarterly/ monthly/ weekly/ daily and now with computerization on every transaction posted in ledger.

Format of Ledger Account Dr Cr Date Particulars F. Amount   Activity#5.1 and 5.2 page #55-56

G. Flynn Dr Cr _________________________A/C £ Activity#5.1 page #55 Date Particulars F. Amount   £ 20X6 20X6 May 1 Sales 810 May 10 Return Inward 93 May 4 Sales 134 May 24 Cash 500 May 31 Balance C/d 341 Total 944 Total 944 June 1 Balance B/d Activity#5.1 page #55

B. Goh Dr Cr _________________________A/C £ Activity#5.1 page #55 Date Particulars F. Amount   £ 20X6 20X6 May 1 Sales 763 May 18 Bank 763 Total 763 Total 763 Activity#5.1 page #55

T. Fey Dr Cr _________________________A/C £ Activity#5.1 page #55 Date Particulars F. Amount   £ 20X6 20X6 May 1 Sales 392 May 10 Return Inward 41 May 20 Bank 351 Total 392 Total 392 Activity#5.1 page #55

F. Start Dr Cr _________________________A/C £ Activity#5.1 page #55 Date Particulars F. Amount   £ 20X6 20X6 May 4 Sales 480 May 31 Balance C/d 720 May 31 Sales 240 Total 720 Total 720 June 1 Balance B/d 720 Activity#5.1 page #55

Sales Dr Cr _________________________A/C £ Activity#5.1 page #55 Date Particulars F. Amount   £ 20X6 20X6 May 1 1965 Debtors 914 May 4 Debtors May 31 Debtors 240 May 31 Balance C/d 3119 Total 3119 3119 Total June 1 Balance B/d 3119 Activity#5.1 page #55

Return Inward Dr Cr _________________________A/C £ Date Particulars F. Amount   £ 20X6 20X6 May 10 Debtors 134 May 31 Balance C/d 134 Total 134 134 Total June 1 Balance B/d 134 Activity#5.1 page #55

Purchase Dr Cr _________________________A/C £ Activity# 5.2 page #56 Date Particulars F. Amount   £ 20X8 20X6 June 1 Creditors 1440 June 30 Balance C/d 3570 June 3 Creditors 1920 June 15 Creditors 210 Total 3570 Total 3570 July 1 Balance B/d 3570 Activity# 5.2 page #56

J.Saville Dr Cr _________________________A/C £ Activity# 5.2 page #56 Date Particulars F. Amount   £ 20X8 20X6 June 3 Return Outward 65 June 1 Purchase 240 June 28 Cash 300 June 15 Purchase 210 June 30 Balance C/d 85 Total 450 Total 450 July 1 Balance B/d 85 Activity# 5.2 page #56

P.Todd Dr Cr _________________________A/C £ Activity# 5.2 page #56 Date Particulars F. Amount   £ 20X8 20X6 June 30 Return Outward 39 June 1 Purchase 390 June 30 Balance C/d 821 June 15 Purchase 470 Total 860 Total 860 July 1 Balance B/d 821 Activity# 5.2 page #56

J.Fray Dr Cr _________________________A/C £ Activity# 5.2 page #56 Date Particulars F. Amount   £ 20X8 20X6 June 10 June 1 Purchase 810 Return Outward 82 June 30 Balance C/d 728 Total 810 Total 810 July 1 Balance B/d 728 Activity# 5.2 page #56

J.Mehan Dr Cr _________________________A/C £ Activity# 5.2 page #56 Date Particulars F. Amount   £ 20X8 20X6 June 19 1450 Bank 1450 June 3 Purchase Total 1450 Total 1450 Activity# 5.2 page #56

Returned Outward Dr Cr _________________________A/C £ Date Particulars F. Amount   £ 20X8 20X6 June 30 147 Balance C/d 186 June 10 Creditors June 10 Creditors 39 Total 186 Total 186 July 1 Balance B/d 186 Activity# 5.2 page #56

Format of Ledger Account (Three Columns) Sales Date Particulars F. Debit Amount Credit Balance   Activity#5.1 and 5.2 page #55-56