The Simple Ledger Debit and Credit Rules.

Slides:

Advertisements

Similar presentations

LESSON 11-1 Posting to an Accounts Payable Ledger

Advertisements

Processing Accounting Information Chapter 2 Analyze business transactions.

1 ACCT 201 LECTURE 2 Recording Business Transactions.

More Review of Special Journals!

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

This is NOT a complete review of Chapter 2 & 3. You must still study your notes and chapter reviews from your electronic workbooks and read the Key Concepts.

Appendix C Special Journals and Subsidiary Ledgers.

 Property  Property Rights  Financial Claims  Credit  Creditor  Assets  Investments  Equity  Owner’s Equity  Liabilities  Business Transaction.

CAPTURING ECONOMIC EVENTS

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Recording Business Transactions Chapter 3.

THE ACCOUNT An account is an individual accounting record of increases and decreases in a specific asset, liability, or owner’s equity item. A company.

McGraw-Hill/Irwin 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin.

Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems

Accounting 211 – Chapter 2 The Recording Process

Chapter 2 Balance Sheet Accounts UNIT 3 Recording Transactions in T-Accounts Accounting 11 September 2011.

Accounting for a Service Business Unit 1.7 The Journal.

Accounting Is an information system that provides reports to stakeholders about the economic activities and conditions of a business.

THE BALANCE SHEET. The Balance Sheet is: a financial statement showing the financial position of a person, business, or other organization on a specific.

1 2 Analyzing Transactions After studying this chapter, you should be able to: Describe the characteristics of an account and a chart of accounts.

ASSETS, LIABILITIES, AND OWNER’S EQUITY MANAGEMENT INFORMATION SYSTEMS II - FINANCIALS.

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Analyzing and Recording Transactions Chapter.

Chapter 2 Recording Business Transactions

Analyzing Transactions

1 2 Analyzing Transactions Describe the characteristics of an account and a chart of accounts

Chapter 2: The Recording Process ACT 201 Lecture By: Ms. Adina Malik.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The purchases journal is used to record credit purchases.

Analyzing Changes in Financial Position

Business Accounts An account is a location within an accounting system in which the increases and decreases in a specific asset, liability, or owner’s.

Property=Property Rights items ownedright to use item / legal right to item’s value.

2 - 1 Debits and Credits – Analyzing and Recording Business Transactions Assets = Liabilities + Owner’s Equity Owner’s Equity = Capital – Withdrawals +

Unit 3 Analyzing Transactions Chapter 2 1. Describe the characteristics of an account and a chart of accounts. p50 Objective 1 2.

Financial Statements. Income statement Statement of owner’s equity Balance sheet Statement of cash flows.

Chapter 3 THE ACCOUNTING CYCLE: Capturing Economic Events.

Make $500,000 or more…. and NO homework… ! Deal/game/flash.shtml.

Debit and Credit Theory Transaction 1 The company purchases $200 of supplies from Packham Products to be paid for later. Supplies AssetsLiabilities.

Account Balances and Terminology. Pacific Truckings.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition1 Chapter 4 Debit and Credit Theory 4.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 3-1 Chapter 3 THE ACCOUNTING CYCLE: Capturing Economic Events.

Property and Financial Claims Property is anything of value that is owned or controlled. Financial Claim is the legal right to an item or property. Property.

PACIFIC TRUCKING. OPENING ENTRY Purpose: To record balances to establish accounts at the beginning of a new fiscal period.

Chapter 4. Objective test 2 On 20 June 20x3 an entity pays R500 in advance for repairs on its vehicle. The supplier first had to order the spare part.

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

Chapter 4 - The Simple Ledger

BAF3M1 THE SIMPLE LEDGER Chapter 4, Section 4.1. Ledger Accounts  In this chapter, you will be learning the system used to maintain an up-to-date financial.

GLENCOE / McGraw-Hill.

THE RECORDING PROCESS CHAPTER 2. THE ACCOUNT An account is an individual accounting record of increases and decreases in a specific asset, liability,

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 3-1 Chapter 4 THE ACCOUNTING CYCLE: ภาคแรก.

Analyzing Changes in Financial Position

Chapter 2: Recording Business Transactions. Learning Objectives: Use accounting terms: describe the basic tools of an accounting system, the account, the.

GLENCOE / McGraw-Hill. The General Journal and the General Ledger.

October 21,  The purpose of accounting is to provide the necessary financial information so that accurate and timely decisions can be made.

That sounds a little confusing.

Chapter 4: The Simple Ledger.

Balance Sheet Accounts

ACCOUNTS RECEIVABLE LEDGER AND GENERAL LEDGER CONTROLLING ACCOUNT

That sounds a little confusing.

Chapter 4 Debit and Credit Theory

Section 3.2 Exercise #1, p (t), p. 28 (w)

University of 6th of October, Egypt

The Simple Ledger 4 1.

Chapter 4: The Simple Ledger 1.

The Balance Sheet.

Pacific Trucking.

That sounds a little confusing.

Review of Accounting 1 Day 2

Presentation transcript:

The Simple Ledger Debit and Credit Rules

Pacific Trucking. Let’s go through the Transactions

Pacific Trucking. 2. Company pays $200 to Dini Bros in partial payment of the amount owed to them. 3. The company receives $200 cash from R. Van Loon in partial payment of her debt. 4. A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.

Pacific Trucking. 5. A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date. 6. A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days. 7. One of the lifting machines (part of equipment) breaks down. The company spends $650 cash to have the machine repaired.

Pacific Trucking After all the transactions, these are the cash and capital T-accounts for Pacific Trucking.

Double-Entry System of Accounting If your accounts do not balance after a transaction, you have DEFINITELY made an error. If your accounts do balance, it is PROBABLY correct, but not necessarily.

Board Exercises Fiona Siska is the owner-operator of a fitness clinic. The ledger used in her business contains the following accounts: -Cash -Accounts Receivable (several) -Supplies -Furniture -Equipment -Automobile -Accounts Payable (several) -Flora Siska, Capital

Board Exercises 1. The business receives $300 cash from J. Parker, one of the accounts receivable. 2. The business purchases $200 worth of supplies for cash. 3. Little Bros., one of the Accounts Payable, is paid $100. 4. The owner withdraws $250 for her personal use. 5. A new piece of equipment costing $500 is purchased from Champion Sports. The business pays $125 cash at the time of purchase, with the balance of $375 to be paid within 30 days. 6. A new customer signs up for a fitness course. The $300 fee is paid in cash.

Homework Exercises Page 103 #2, 3