Professional Documents
Culture Documents
A231 Topic 3
A231 Topic 3
3 Recording Process
Accounting
A Malaysian
Perspective
5e
Learning Objectives
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Using Accounts to Record Transactions
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Using Accounts to Record
Transactions
Definitions
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Characteristics of an Account
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Types of Accounts
7
• Assets
• Liabilities
• Revenues
• Expenses
• Capital
• Withdrawals
Using Accounts to Record
Transactions
The T Account
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The T Account
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The T Account
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The T Account
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NetSolution’ s November Transactions
Total Debit
25,000 + 7,500 = 32,500
Total Credit
20,000 + 3,650 + 950 + 2,000 = 26,600
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Chart of Accounts for NetSolutions
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Normal Balances
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Rules of Debit and Credit, Normal Balances of
Accounts
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RULES of DEBIT & CREDIT
Double-Entry Accounting System
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Statement of Financial Position Accounts
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Statement of Profit or Loss
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Owner Withdrawals
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Example Exercise Rules of Debit and Credit and Normal
Balances
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The Steps in the
Recording Process
Transaction Analysis
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Journalizing steps
Transaction
Transaction Date
Date
Titles
Titles of
ofAffected
AffectedAccounts
Accounts
GENERAL JOURNAL G1
Da te De scription REF De bit Cre dit
2019
De c. 1 Ca sh 30,000
C. Ta ylor, Ca pita l 30,000
Investment b y owner
De c. 2 Supplie s 2,500
Ca sh 2,500
Purchased store supplies
for cash
Dollar
Dollar amount
amount of
of
Transaction
Transaction explanation
explanation debits
debits and
and credits
credits
Transaction A
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Transaction Terminology and Related Journal
Entry Accounts
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Transaction B
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Transaction C
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Transaction D
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Transaction E
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Transaction F
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Transaction G
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Transaction G
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Transaction H
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Example Exercise Journal Entry for Asset Purchase
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Posting Journal Entries to Accounts (slide 1 of 3)
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Posting Journal Entries
GE N E R AL JOU R N AL G 1
Da te De scription
GENER REF De bit Cre
G dit
GE N E R AL JOU R
RNAL
N AL 1
2006
Da te De scription REF De bit Cre
Da te De scription REF De bit Cre dit
dit
De c.
2019 1 Ca sh 30.000
2006
De c. 1 Ca sh C. Ta ylor, Ca pita l 30,000 30.000
De c. 1 Ca sh 30.000
Inves tm ent
C. Tab y owner
C. Ta ylor,
ylor, Ca
Ca pita
pita ll 30,000
30.000
Inves tment
Inves tm ent bbyy owner
owner
De c. 2 S upplie s 2.500
De c. 2 Supplie Ca sh 2.500
De c. 2 S upplie s s 2,500
2.500
P urc hasCaed
shs tore s upplies 2,500
Ca sh 2.500
for
Purcc as h
P urc has
has ed
ed s
s tore
tore s
s upplies
upplies
for c
for c as
as h
h
2-1
POSTING TO THE LEDGER
Cash Capital
Nov. 5 La nd 20,000
Ca sh 20,000
Purc has ed land
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Posting Journal Entries to Accounts (slide 3 of 3)
• The debits and credits for each journal entry are posted to the
accounts in the order in which they occur in the journal.
• The debit portion of the December 1 journal entry on the
previous slide is posted to the prepaid insurance account using
the following four steps:
o Step 1. The date (Dec. 1) of the transaction is entered in the Date
column of Prepaid Insurance and Cash.
o Step 2. The amount (2,400) is entered into the Debit column of Prepaid
Insurance and the amount (2,400) is entered into the Credit column of
Cash.
o Step 3. The journal page number (2) is entered in the Posting
Reference (Post. Ref.) column of Prepaid Insurance and Cash.
o Step 4. The account numbers (15) and (11) are entered in the Posting
Reference (Post. Ref.) column in the journal.
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Diagram of the Recording and Posting of a
Debit and a Credit
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POSTING JOURNAL ENTRIES
• EXAMPLES
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Transaction – Paid Rent
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Transaction – Purchased Office Equipment
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Transaction – Paid for Advertisement
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Transaction – Paid Creditors, Part 1
decrease decrease
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Transaction – Paid Wages, Part 1
decrease increase
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Transaction – Received Fees, Part 1
increase increase
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Transaction – Fees Earned on Account (slide 1 of 2)
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Transaction – Fees Earned on Account (slide 2 of 2)
increase increase
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EXERCISE - Journal Entry for Fees Earned
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part.
Transaction – Paid Creditors, Part 2
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Transaction – Received Payment on Account
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Transaction – Paid for Supplies
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Transaction – Paid Wages, Part 2
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Transaction – Paid Telephone Bill
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Transaction – Paid Electric Bill
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Transaction – Received Fees, Part 2
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Transaction – Fees Earned on Account
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Transaction – Withdrew Cash
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EXERCISE - Journal Entry for Owner’s Withdrawal
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part.
EXERCISE - Missing Amount from an Account
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part.
Ledger Accounts for a Merchandising
Business (slide 1 of 3)
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Ledger Accounts for a Merchandising
Business (slide 2 of 3)
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Ledger Accounts for a Merchandising
Business (slide 3 of 3)
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Trial Balance (slide 1 of 2)
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Trial Balance
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Errors Affecting the Trial Balance
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Example Exercise Trial Balance Errors (slide 1 of 2)
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part.
Errors Not Affecting the Trial Balance (slide 1 of 2)
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Errors Not Affecting the Trial Balance (slide 2 of 2)
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Example Exercise Correcting Entries (slide 1 of 2)
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part.
Example Exercise Correcting Entries (slide 1 of 2)
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part.
Example Exercise 84
Self-study