Akaun Chapter 3

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Akaun Chapter 3

  1. 1. Pills for today THE HIGHER THE MOUNTAIN U CLIMB, THE VIEW IS NICER
  2. 2. CHAPTER THREE : THE RECORDING PROCESS
  3. 3. Outline <ul><li>Characteristics of an account </li></ul><ul><li>The rules of Debit and Credit </li></ul><ul><li>The steps in recording process </li></ul><ul><li>The preparation of Trial Balance </li></ul>
  4. 4. The Books of Entry <ul><li>Journal : Prime entry book </li></ul><ul><li>Account : individual accounting record of increases or decreases in a specific item. </li></ul><ul><li>Ledger : Group of accounts </li></ul><ul><ul><li>General Ledger </li></ul></ul><ul><ul><li>Creditors Ledger / Accounts Payable </li></ul></ul><ul><ul><li>Debtors Ledger / Accounts Receivable </li></ul></ul><ul><li>Chart of Account : List of accounts </li></ul>
  5. 5. The Recording Process Documents Documents Documents Source Documents Journal Ledger Trial Balance
  6. 6. Journal Name of the journal Date Particular Folio Debit Credit
  7. 7. Account Name of the account Debit Credit Date Particular Folio Total Date Particular Folio Debit Credit Balance Name of the account T-Account Three Columns Account
  8. 8. The Rules of Debit and Credit <ul><li>Assets : </li></ul><ul><ul><ul><li>Debit => increase </li></ul></ul></ul><ul><ul><ul><li>Credit => decrease </li></ul></ul></ul><ul><li>Liabilities and Owner’s Equity : </li></ul><ul><ul><ul><li>Debit => Decrease </li></ul></ul></ul><ul><ul><ul><li>Credit => Increase </li></ul></ul></ul>
  9. 9. The Rules of Debit and Credit Debit Account Credit Increase in Assets Decrease in Assets Decrease in Liabilities Increase in Liabilities Decrease in Owner’s Equity Increase in Owner’s Equity Decrease in Revenue Increase in Revenue Increase in Expenses Decrease in Expenses
  10. 10. Expansion of Basic Equation Assets = Liabilities + Owner’s Equity Assets Liabilities Capital Drawings Revenue Expenses
  11. 11. Recording Transaction Transaction Debit Credit Started business with cash. Capital Cash Bought office equipment on credit from Syarikat Emas. Office Equipment Account Payable Received loan from Bank Intan in cash. Cash Bank Loan
  12. 12. Transaction Debit Credit Bought motor van by cash Motor Vehicle Cash Paid rental expenses by cash Rental Expenses Cash Bought office supplies by credit Office Supplies Account Payable
  13. 13. Transaction Debit Credit Paid utility bills with cash Utility Expenses Cash Received cash from Abu, a debtor. Cash Account Receivable A check on supplies showed that RM120 supplies has been used. Supplies Expenses Office Supplies
  14. 14. Transaction Debit Credit Owner brought in his own car to be used in business. Motor Vehicle Capital Sold motor van for cash Cash Motor Vehicle Owner took cash for his own use. Drawings Cash
  15. 15. Journal Entries Siti Malaysia, the owner of Tadika Malaysia started her business on 1 January 2002 with cash M25,000. The followings are transactions related to the business for the month of January: Illustration : Tadika Malaysia
  16. 16. Tadika Malaysia General Journal Date Particulars Debit Credit Jan. 1 Cash 25,000 Capital 25,000 ( Cash invested by owner )
  17. 17. Tadika Malaysia- General Journal Jan. 5 Bought office equipment with cash, RM500. Jan. 5 Office Equipment 500 Cash 500 (Bought office equipment with cash) Date Particulars Debit Credit
  18. 18. Tadika Malaysia- General Journal Jan.10 Bought furnitures amounting to RM4,700 with cash from Syarikat Perabot Kita. Jan. 10 Furnitures 4,700 Cash 4,700 ( Bought furnitures with cash ) Date Particulars Debit Credit
  19. 19. Tadika Malaysia- General Journal Jan. 11 35,000 35,000 Date Particulars Debit Credit Jan.11 Bought motor van for business use by credit from Syarikat Kenderaan amounting to RM35,000. Motor vehicles Account Payable ( bought motor van by credit )
  20. 20. Tadika Malaysia- General Journal Jan.15 Paid advertising expense RM2,000 with cash. Jan. 15 Advertising expense 2,000 Cash 2,000 ( Paid advertising expense with cash ) Date Particulars Debit Credit
  21. 21. Tadika Malaysia- General Journal Jan.18 Paid utility bills with cash amounting to RM325. Jan. 18 Utilities Expense 325 Cash 325 ( Paid utility bills with cash ) Date Particulars Debit Credit
  22. 22. Tadika Malaysia- General Journal Jan.23 Paid salaries by cash RM700 per person for 5 workers. Jan. 23 Salary expense 3,500 Cash 3,500 ( Paid salary by cash ) Date Particulars Debit Credit
  23. 23. Tadika Malaysia- General Journal Jan 24 Received cash RM7,500 for the fees of the month. Jan. 24 Cash 7,500 Revenue : Fees 7,500 ( received fees or the month ) Date Particulars Debit Credit
  24. 24. Tadika Malaysia- General Journal Jan.27 Bought two units of computers on credit , amounting to RM4,000 per unit. Jan. 27 Office Equipment 8,000 Account Payables 8,000 ( Bought computers on credit ) Date Particulars Debit Credit
  25. 25. Tadika Malaysia- General Journal Jan.30 Siti Malaysia took cash RM1,200 for her own use. Jan. 30 Drawings 1,200 Cash 1,200 ( Cash withdrawals by the owner ) Date Particulars Debit Credit
  26. 26. Posting from journal to ledger Journal Ledger
  27. 27. General Ledger Cash Jan 1 Capital 25,000 Jan 5 Office Equipt 500 24 Fees Rec. 7,500 10 Furnitures 4,700 18 Utilities 325 15 Advertising 2,000 30 Drawings 1,200 23 Salary 3,500 Balance c/f 32,500 32,500 20,275
  28. 28. General Ledger Capital Jan 1 Cash 25,000 25,000 25,000 Jan 31 Bal c/f 25,000
  29. 29. General Ledger Office Equipment Jan 31 Bal c/f 8,500 Jan 5 Cash 500 27 A/c Payable8,000 8,500 8,500
  30. 30. General Ledger Furnitures Jan 31 Bal c/f 4,700 Jan 10 Cash 4,700 4,700 4,700 Motor Vehicles Jan 11 A/c Payable 35,000 Jan 31 Bal c/f 4,700 35,000 35,000
  31. 31. General Ledger Account Payable Jan 31 Bal c/f 43,000 Jan 11 M. Vehicles 35,000 27 O. Equipmt 8,000 43,000 43,000
  32. 32. General Ledger Advertising Jan 31 Bal c/f 2,000 Jan 15 Cash 2,000 2,000 2,000 Utility Jan 18 Cash 325 Jan 31 Bal c/f 325 325 325
  33. 33. General Ledger Salaries Jan 31 Bal c/f 3,500 Jan 23 Cash 3,500 3,500 3,500 Fees Received Jan 24 Cash 7,500 Jan 31 Bal c/f 7,500 7,500 7,500
  34. 34. General Ledger Drawings Jan 30 Cash 1,200 1,200 1,200 Jan 31 Bal c/f 1,200
  35. 35. The Trial Balance A list of accounts and their balances at a given time. The purpose: to prove that the debits equal the credits after posting. If the debits and credits do not agree, it is a sign of error that occurs during journalizing and posting.
  36. 36. Tadika Malaysia Trial Balance as at 31 January 2002 Accounts Debit Credit Cash 20,275 Capital 25,000 Office Equipment 8,500 Furniture 4,700 Motor Vehicles 35,000 Account Payables 43,000 Advertising 2,000 Utility 325 Salaries 3,500 Fees Received 7,500 Drawings 1,200 75,500 75,500
  37. 37. The Trial Balance : Errors <ul><li>Errors affecting trial balance </li></ul><ul><li>Errors not affecting trial balance </li></ul>
  38. 38. Errors affecting trial balance <ul><li>Omission of part of an entry </li></ul><ul><li>Errors of transposition </li></ul><ul><li>Errors in addition in the ledger accounts </li></ul><ul><li>Posting to incorrect sides of accounts </li></ul><ul><li>Errors in trial balance </li></ul>
  39. 39. Errors not affecting trial balance <ul><li>Error of omission </li></ul><ul><li>Error of commission </li></ul><ul><li>Error of principle </li></ul><ul><li>Complete reversal of entries </li></ul><ul><li>Compensating errors </li></ul><ul><li>Errors of original entries </li></ul>
  40. 40. Thank You

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