2. Double Entry Accounting System DRCR

4. One day, you bought a new handphone Nokia 8310… You also received an invoice from M1…

5. You decided to write down what you have spent on a notebook so that you will not forget…

6. To record every different expenses on your notebook seem very messy to you, so you decided to keep a notebook for hobbies, books & stationery, food & transport etc…

7. Income Expense $ $ Pocket money received140 Hobbies20 Food & Transport70 Books & Stationery10 Sports & Recreation15 Handphone bill20 Left* 5 140140 Income Statement You want to see if your records are correct at the end of the month… Did you forget to record anything?…

8. At the end of the month, you added up all your pocket money received and the total amount of money spent. Did you overspent on your hobbies? Do you have some money to save for the month? How much money do you have left at the end? Should you cut down on your expenses next month? …

9. ___________ (_________) _______________ Balance Books _____________ Can you link?? Journalize Transactions Close the Books

10. Accounting Equation

11. A ssets = O wner ’ s E quity + L iabilities Items of _______ owned by the business The funds of a business provided by its _____________ and the ________ entitled to him ______ owed by a business to external parties such as suppliers

12. A ssets = O wner ’ s E quity + L iabilities Building Motor vehicle Office Equipment Fixtures Stock (closing) Cash in hand Cash at bank Capital Profits Creditors Loan from bank Other creditors * Explain these terms to students

13. A ssets = O wner ’ s E quity + L iabilities Every transaction will affect _________ items. The equation will still balance!

14. ________ = ________+ _______ ACCOUNTING EQUATION

15. What is a Balance Sheet? It is a report that is used to present the ____________ _____________________that involves a firm ’ s total ________, total _________ _________ and __________ _____________of an accounting period. It is a report that ________ ________like investors or bankers look at when making important business decisions. How does it look like? Click me!

16. BALANCE SHEET AS AT 31 Dec 2000 Liabilities Loan from bank 2000 Creditors 5550 Owner ’ s Equity $ $ Capital 40000 Assets $ $ Cash 530 Motor Vehicle 25000 Land 22020 47550 47550 Assets = Owner ’ s Equity + Liabilities Liabilities