TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
Journal & debit credit rule
1.
2. Journal means a daily record of business transactions. Journal
is a book of original entry because transaction is first written
in the Journal from which it is posted to the ledger.
JOURNAL
4. Personal Account
Account which shows dealing of business with a
person is known as personal account
A person can be Natural Person like name of
debtors or creditors or a proprietor like Mohan’s
A/c Kapil’s Capital A/C etc.
OR
It can be an Artificial or Legal person like limited
companies ( Hindustan Unilever Ltd.) Partnership
firms ( Kumar and Sons.) Government Agencies
(Greater Noida Development Authority) etc.
5. Real Account
Account related to property or assets are known as
Real Account
Assets may Tangible and Intangible
Tangible Assets :- are the assets which can be seen,
touched, felt and measured as cash , furniture land
Building , Stock of Goods etc
Intangible Assets:- are those assets which can not
physically seen or touched but can be expressed in
monitory terms like goodwill, Patents, Copy rights,
Patents etc.
6. Nominal Account
Account related to expenses , losses Income and
Gains are known as real accounts as Salaries A/C (
Salary paid to the employees) , Rent A/C, Loss by
Fire A/c, Interest Received A/c , Commission
Received A/c etc
This Account is also known as Temporary
accounts because these are ultimately transferred
to Profit and loss account at the end of the year to
calculate the Profit of loss of the business.
7. Type of
Account
Debit (Dr.) Credit (Cr.)
1 Personal The Receiver The Giver
2 Real What Comes In What Goes Out
3 Nominal All Expenses
and Losses
All profit and
Gains
8. RECORDING TRANSACTIONS
Transactions recorded in
Journals
Organized by date
Ledgers
Organized by account
8
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9. THE ACCOUNT
9
Each account has a
Title
Recording place for debits
Recording place for credits
LG 3
Left side
Debit
Right side
Credit
Title
10. RULES OF DEBIT & CREDIT
Normal balance of account is side used to increase
Asset accounts have debit balances
Example: cash
10
CASH
DEBITS
INCREASE
LG 3
Continued
11. RULES OF DEBIT & CREDIT
Normal balance of account is side used to increase
Liability, Equity accounts have credit balances
Example: Retained Earnings
11
RETAINED EARNINGS
LG 3
CREDITS
INCREASE
13. RULE 2 OF DEBIT & CREDIT: Assets
Asset accounts on left side of equation are
Increased by debits and
Have debit balances
13
DEBIT
BALANCE
ASSET ACCTS
+
LG 3
14. RULE 2 OF DEBIT & CREDIT: Liability &
Equity
Liability & equity accounts on right side of equation
are
Increased by credits and
Have credit balances
14
LIABILITY & EQUITY ACCTS
CREDIT BALANCE
+
LG 3
15. RULE 2 OF DEBIT & CREDIT: Revenue
Revenue accounts increase equity on right side of
equation are
Increased by credits and
Have credit balances
15
REVENUE ACCOUNTS
CREDIT BALANCE
+
LG 3
16. RULE 2 OF DEBIT & CREDIT:
Expense
Expense accounts decrease equity which is on right
side of equation are
Increased by debits and
Have debit balances
16
DEBIT
BALANCE
EXPENSE ACCTS
+
LG 3
17. RULE 3 OF DEBIT & CREDIT
For each transaction
Total debits will equal total credits
17
TRANSACTION
TOTAL
CREDITS
TOTAL DEBITS
LG 3
18. RECORDING TRANSACTIONS
Transactions recorded in
Journals
Organized by date
Ledgers
Organized by account
18
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journal
entries
19. JOURNALIZING
Bob Sample opened the Campus Laundromat on September 1, 2017. During
the first month of operations, the following transactionsoccurred.
Sept. 1 Bob invested $20,000 cash in the business.
2 The company paid $1,000 cash for store rent for September.
3 Paid $1,200 for a one-year accident insurance policy.
4 Bob withdrew $700 cash for personal use.
The chart of accounts for the company is the same as that forPioneer
Advertising plus No. 610 AdvertisingExpense.
Instructions:
(a)Journalize the September transactions. (Use J1 for the journalpage
number.)
(b) Open ledger accounts and post the September transactions.
(c)Prepare a trial balance at September 30, 2017.
20. Date Account Titles and Explanation Ref. Debit Credit
2017 Sept. 1 Cash
Owner’s Capital
(Owner’s investment of cash in
business)
20,000
20,000
2017 Sept. 2 Rent Expense
Cash
(Paid September rent)
1,000
1,000
2017 Sept. 3 Prepaid Insurance
Cash
(Paid one-year insurance policy)
1,200
1,200
2017 Sept. 4 Owner’s Drawings
Cash
(Withdrew cash for personal use)
700
700
CAMPUS LAUNDROMAT
JOURNAL
Solution