Double%20Entry

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Double Entry System 2
DR
CR
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The Accounting System to record transactions
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• Objectives
• At the end of the lesson, students should be able
  to
• know what are General Journal and Special
• Journals.
• able to record simple business transactions
• using the Double Entry Accounting System
• into the General / Special Journals.

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An Overview
General Journal
Special Journals
Ledger Accounts
Trial Balance
Adjustments
Prepare Simple Financial Statements
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GENERAL JOURNAL
Debit
Credit
Date
Particulars


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a) John began business with cash in hand 5000
on 1 January 2000.
2000 Jan 1
5000
Cash in hand
5000
Capital-John
John began business with cash 5000.
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b) John began business with a bank loan of
8000 on 1 January 2000.
2000 Jan 1
8000
Cash in hand
8000
Loan from bank
John began business with a bank loan of 8000.
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• John used 2000 to buy a motor vehicle
  
• for business use on 16 March 2000.

2000 Mar 16
2000
Motor Vehicle
2000
Cash
John bought a motor vehicle worth 2000.
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• John repaid bank loan of 1500 using cash
• on 27 Oct 2000.

2000 Oct 27
1500
Loan from Bank
1500
Cash
John repaid the bank loan.
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• John sold goods at 6000 on credit to
• ABC Ltd on 26 November 2000.

2000 Nov 26
6000
Debtors (ABC Ltd)
6000
Sales
Sales worth 6000 to ABC Ltd.
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f) Stock count was conducted and closing stock
was found to be 10,000 on 31 Dec 2000.
2000 Dec 31
10,000
Stock
10,000
Trading
To record closing stock worth 10,000.
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It is common for the owner to draw money or goods
from the firm for personal use anytime. According
to the Accounting Entity concept, we must record
the event even though he is the owner of the
firm.
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It is common for the owner to draw money or goods
from the firm for personal use anytime. According
to the Accounting Entity concept, we must record
the event even though he is the owner of the
firm.
DRAWINGS
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• The owner withdrew cash 1000 for his
• personal use on 1 April 2000.

2000 April 1
1000
Drawings
1000
Cash
To record drawings of 1000 cash.
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An Overview
General Journal
Special Journals
Ledger Accounts
Trial Balance
Adjustments
Prepare Simple Financial Statements
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4 SPECIAL JOURNALS
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Reason for the purchases journal
General Journal
Debit
2000

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Purchases Journal
Dr Purchases Cr Creditors
Purchases Journal
2000
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Returns Outwards Journal
Dr Creditors Cr Returns Outwards
Returns Outwards Journal
2000
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Reason for the Sales Journal
General Journal
Dr
2000

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Sales Journal
Dr Debtors Cr Sales
Sales Journal
2000
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Returns Inwards Journal
Dr Returns Inwards Cr Debtors
Returns Inwards Journal
2000
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Tips to remember
OUT
IN
Credit Returns Outwards
Debit Returns Inwards