Professional Documents
Culture Documents
Credit Nature
Liabilities
Income
Capital
Debit (left) side (-)
Credit (right) side (+)
Normal Balance is a
Credit Balance
Bookkeeping Process
0
Andrew Lee Pg 21
Miko Pg 20
GENERAL JOURNAL
VS
SPECIALISED JOURNALS
Cash Book
Records all receipts and payments of cash and
cheques of a business
Special feature: it is BOTH a book of prime entry
as well as a ledger
Cash Account
Bank Account
Discount Allowed Account
Discount Received Account
Date
Particulars
Not part of
Double
Entry
System,
just
recording
columns.
Folio
Discount
Allowed
Expense
Cash
Bank
Date
Particulars
Folio
Discount
Received
Revenue
Cash
Bank
Sales Day
Book
Credit
Sales
Purchases
Day Book
Sales
Returns
Day Book
Purchases
Returns
Day Book
Credit
Purchases
Returns
from credit
customers
Returns to
credit
suppliers
Credit Sales
Credit Purchases
trade discount
Source Document:
Invoice (issued)
trade discount
Source Document:
Invoice (received)
Invoice
#
Customers /
Receivables
Name of customer
Folio
SL
Total
Amount
XXX
XXXXX
Invoice
#
Suppliers / Payables
Name of supplier
Folio
PL
Total
Amount
XXX
Total to Purchases
Account
XXXX
Defective / faulty
Wrong Specification / type / quality / size
Damaged goods
Packing cases / empty bottles / containers
or reduction/allowance in
a customers
(receivables) account
Source Document: Credit
Note (issued)
or reduction/allowance in
a suppliers (payables)
account
Source Document: Credit
Note (received)
Credit
Note #
Customers /
Receivables
Name of customer
Folio
SL
Total
Amount
XXX
XXXXX
Credit
Note #
Suppliers / Payables
Name of supplier
Folio
PL
Total
Amount
XXX
Total to Purchases
Account
XXXX
General Journal
Records transactions that do not fit inside the
Particulars
DR ($)
Drawings
40
Purchases
(Inventory drawn out by owner)
CR ($)
40
Bookkeeping Process
+ Cost of Purchases
- Closing Inventories
Cost of Purchases = Net Purchases
+ Carriage In
+ Custom Duty
Profit & Loss Account
Net Profit/Loss
Net Profit = Gross Profit + Other Income Operating
Expenses
Sales
Less: Sales Returns
Net Sales
Less: Cost of Goods Sold
Opening Inventories
Purchases
Less: Closing Inventories
Gross Profit
Add: Disc. Recd
Less: Operating Expenses
Sundry Expenses
Disc. Allowed
Net Profit
$
1,820
(60)
1,760
4,800
2,109
(5,500)
1,409
351
250
187
5
(192)
409
Non-Current Assets
Furniture
Current Assets
Inventories
Receivables
Cash
$
5,266
5,500
2,130
3,743
11,373
16,639
Equity
Capital 1 Jan
Add: Net Profit (from IS)
Less: Drawings
Capital 31 Dec
Non-Current Liability
Loan - Sime
Current Liabilities
Trade Payables
Other Payables
Bank Overdraft
2,202
409
(627)
1,984
7,000
2,136
2,800
2,719
7,655
16,639
Imprest/Float $500
$21.50
Payment
Voucher
+ receipt
$21.50
Remaining Cash
$135
Payment Vouchers
totalling $365