Accounting Entry FlowAccounting Entry Flow

LAI Siu Tim Timmy TimothyLAI Siu Tim Timmy TimothyIn-service Course of Teacher Training (Technical)In-service Course of Teacher Training (Technical)

1999-20001999-2000

Accounting Entry FlowAccounting Entry Flow

Documents for Business TransactionsDocuments for Business Transactions

Books of Original EntryBooks of Original Entry(Cash Journals)(Cash Journals)

(Sales Journals)(Sales Journals)

(Returns Inwards Journals)(Returns Inwards Journals)

(Purchases Journals)(Purchases Journals)

(Returns Outwards Journals)(Returns Outwards Journals)

(General Journals)(General Journals)

Ledger Accounts (Double Entry)Ledger Accounts (Double Entry)

Accounting Entry FlowAccounting Entry Flow

Ledger Accounts (Double Entry)Ledger Accounts (Double Entry)

Balancing Off Ledger AccountsBalancing Off Ledger Accounts

Trial BalanceTrial Balance

Balance SheetBalance Sheet

Accounting Entry FlowAccounting Entry Flow

Trading and Profit and Loss AccountsTrading and Profit and Loss Accounts

Balance SheetBalance Sheet

Accounting Entry FlowAccounting Entry Flow

Documents for Business Transactions

Books of Original EntryBooks of Original Entry

Ledger Accounts (Double Entry)Ledger Accounts (Double Entry)

Balancing Ledger AccountsBalancing Ledger Accounts

Trial BalanceTrial Balance

Trading & Profit & Loss AccountsTrading & Profit & Loss Accounts

Balance SheetBalance Sheet

Preparation of Trial BalancePreparation of Trial Balance

LedgerLedger

PurchasesPurchases

19xx $19xx $

Dec 31 Balance b/d 12,000Dec 31 Balance b/d 12,000

Trial Balanceas at 31 December 19xxTrial Balanceas at 31 December 19xx

DR.$ CR.DR.$ CR.$$

PurchasesPurchases 12,000 12,000

Preparation of Trial BalancePreparation of Trial Balance

LedgerLedger

BankBank19xx $19xx $

Dec 31 Balance b/d 5,200Dec 31 Balance b/d 5,200

Trial Balanceas at 31 December 19xxTrial Balanceas at 31 December 19xx

DR.$ CR.$DR.$ CR.$

Purchases 12,000Purchases 12,000

Bank Bank 5,200 5,200

Trial Balanceas at 31 December 19xxTrial Balanceas at 31 December 19xx

DR.$ CR.$DR.$ CR.$PurchasesPurchases 12,000 12,000

BankBank 5,200 5,200

EquipmentEquipment 24,500 24,500

SalesSales 84,40084,400

RentRent 32,000 32,000

Debtors: T.LeeDebtors: T.Lee 2,450 2,450

StockStock 34,250 34,250

CapitalCapital 26,000 26,000

110,400 110,400110,400 110,400

Classification of AssetsClassification of Assets

Fixed Assets:Fixed Assets:

Examples:Examples:

Land & BuildingsLand & Buildings

Motor VansMotor Vans

i) i) are of long lifeare of long life

ii)ii) are to be used inare to be used in

the businessthe business

iii) were not boughtiii) were not bought

only for theonly for the

purpose of resalepurpose of resale

Classification of AssetsClassification of Assets

Current Assets:Current Assets:

Example:Example:

CashCash

StockStock

i) are to be used upi) are to be used up

within one yearwithin one year

ii) are for the purpose ii) are for the purpose

of resaleof resale

Cost of Goods SoldCost of Goods Sold

Opening Stock $300Opening Stock $300

AddAdd Purchases $200Purchases $200

Total Goods Available Total Goods Available $500$500

LessLess Closing Stock $200Closing Stock $200

Cost of Goods Sold $300Cost of Goods Sold $300