1. General and Debtors’ Ledgers
The accounting cycle:
Source Document
Journals
General and Debtors’ Ledgers
Trial Balance
Financial Statements

2. The concept of a ‘BALANCE’
In accounting the process is cyclical.
Daily transactions are recorded in journals.
Monthly journals are posted to Ledger accounts.
The ledger accounts are added to every month.
The amount from the previous month (left-over) is known as a balance.

3. The concept of a ‘BALANCE’
The above balance represents stock left over from the previous month. This stock can be seen in a physical store room. The Trading Stock Account is a representation (on paper) of the physical stock
R6 450 worth
of stock In here.

4. MORE! Posting the DJ The DJ records credit purchases.
(Buy now, pay later)
Therefore as a result of these transactions, the debtor owes…
MORE!

5. Posting the Debtors’ Journal

6. Posting the Debtors’ Journal

7. The Debtors’ Ledger

8. Posting the DJ to the Debtors’ Ledger

9. LESS! Posting the DAJ The DAJ records returns from Debtors
Therefore as a result of the return the debtor owes…
LESS!

10. Posting the DAJ to the General Ledger

11. Posting the DAJ to the General Ledger

12. Posting the DAJ to the Debtors Ledger

13. Posting the CRJ The CRJ is used to record…
Money received from a Debtor
Therefore as a result the Debtor owes…
LESS!

14. Posting the Debtors’ Control column in the CRJ