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Double Entry Double Entry Accounting Accounting System System DR CR
Double EntryDouble Entry
Accounting Accounting SystemSystem
DR CR
One day, you bought a new handphone Nokia 8310…
You also received an invoice from M1…
You decided to write down what you have spent on a notebook so that you will not forget…
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…
Income Expense
$ $Pocket money received 140
Hobbies 20
Food & Transport 70
Books & Stationery 10
Sports & Recreation 15
Handphone bill 20
Left* 5
140 140
Income Statement
You want to see if your records are correct at the end of the month… Did you forget to record anything?…
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? …
___________
___________
(_________)
_______________
Balance Books _____________
_____________
_____________
Can you link??
Journalize Transactions
Close the Books
Accounting Equation
Assets = Owner’s Equity + Liabilities
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
Assets = Owner’s Equity + Liabilities
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
Assets = Owner’s Equity + Liabilities
Every transaction will affect _________ items.
The equation will still balance!
________________ = = ________________++
______________
ACCOUNTING ACCOUNTING EQUATIONEQUATION
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!
BALANCE SHEET BALANCE SHEET
AS AT 31 Dec 2000AS AT 31 Dec 2000
LiabilitiesLiabilitiesLoan from bank Loan from bank 20002000Creditors Creditors 55505550
OwnerOwner’’s Equitys Equity $ $ $$
Capital Capital 4000040000
AssetsAssets $ $$ $
CashCash 530 530Motor Vehicle 25000Motor Vehicle 25000Land Land 2202022020
4755047550 4755475500
Assets =Assets = OwnerOwner’’s Equity + s Equity +
LiabilitiesLiabilities
