FINANCIL LITERACT: EMS

1. ECONOMIC
MANAGEMENT AND
SCIENCES
GRADE 9
General ledger of a Sole trader

2. Lesson Objectives
BY THE END OF THE LESSON,LEARNERS MUST BE ABLE TO:
Define the term double entry principle.
Distinguish between an asset, owner’s equity and liability.
Compile accounts classified as assets, owner’s equity and liabilities.
List all the accounts classified as assets, owner’s equity and liabilities.
Engage in a general ledger quiz.
Analyse and record the transactions on the general ledger accounts.

3. Let’s
Discuss!
WHAT HAPPENS ON THE LEFT MUST ALSO
HAPPEN ON THE RIGHT!

4. Accounting Equation!
ASSETS = OWNER’S EQUITY + LIABILITIES
NON- CURRENT ASSETS
CURRENT ASSETS
DRAWINGS
CAPITAL
INCOME & EXPENSES
NON-CURRENT LIABILITIES
CURRENT LIABILITIES

5. MEANING
OF THE
TERM
DOUBLE
ENTRY
This is based on a simple principle, that for every debit
there must have an equal and opposite credit.
There should be at least two accounts involved in any
transaction
FOR EXAMPLE: If a business takes out a R5 000 loan, the
cash (asset) account is debited with R5 000 and the
outstanding debt (liability) account is credited with R5 000.
In short, we debit the receiver and credit the giver.
A LEDGER ACCOUNT FORMAT IS AS FOLLOWS:

6. General
Ledger
Format!
DATE DETAILS FOL. AMOUNT DATE DETAILS FOL. AMOUNT
Day
Month
Year
Name of
the
account
debited
Journal
ref
Day
Month
Year
Name of the
account
credited
Journal
ref

7. Let’s Do An Example!
Tammy started a business called Tammy Smoothies. On 1 March 2022, she deposited a
capital contribution of R100 000 into the bank account.
General Ledger of Tammy Smoothies – 31 March 2022
dr. Capital cr.
Bank
Date Details Fol. Amount Date Details Fol. Amount
01 Ma
2022
Bank CRJ 100 000
Date Details Fol. Amount Date Details Fol. Amount
01 Mar
2022
Capital CRJ 100 000

8. It’s Quiz Time!
1. Go to google and type
Socrative.com
2. Click on Login then student login
3. Enter the room name
NKABINDE8900
4. Enter your name
5. Start the quiz!
6. You only have 2 minutes!

9. Let’s Wrap
Up!
A double entry principle states that for
every debit there is a credit entry.
The format of general ledger
Analyse the transaction and identify the
accounts affected and the amounts
Record on the ledger account