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Financial Accounting 1 Lesson 3 - SO1 Double Entry - Recording
Financial Accounting 1 Lesson 3 - SO1 Double Entry - Recording
Financial Accounting 1 Lesson 3 - SO1 Double Entry - Recording
(FA510US)
NQF Level 5
(10 Credits)
Chapter 4
i.uzera@ium.edu
Principle of Double Entry
JOURNAL
JOURNAL
LEDGER
1
2
3
TECHNIQUE OF JOURNALISING
This is the wrong format; all debits must be listed before
the credits are listed.
CASH RECEIPTS & CASH PAYMENTS JOURNALS
The Cash Receipts Journal & Cash Payments Journal
may be more detailed. See below:
SALES JOURNAL
Format of detailed sales Journal
PURCHASES JOURNAL
Format of detailed Purchases Journal
THE ACCOUNT
Title of Account
Left or debit side Right or credit side
Capital
C ash
15,000
15,000
C ash
15,000
C ash
15,000 7,000
8,000
Assets
Increase
Decrease
Debit
Normal Credit
Balance
Liabilities
Decrease
Increase
Debit Credit
Normal
Balance
Increasing & Decreasing Asset Accounts
Asset furniture is
increasing
Asset bank
decreasing
Owner’s Capital
Decrease Increase
Debit Credit
Normal
Balance
Increasing Equity & Asset Accounts
Asset bank is
increasing
Owner’s Drawings
Increase Decrease
Debit Credit
Normal
Balance
NORMAL BALANCES —
REVENUES AND EXPENSES
Revenues
Decrease Increase
Debit Credit
Normal
Balance
Expenses
Increase
Decrease
Debit
Normal Credit
Balance
Increasing Revenue & Asset Accounts
Asset bank increased
Revenue Sales
increased