Books of First Entry Across the Business Studies Course
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- Layout of Accounts – T Accounts
- DEBIT THE RECEIVER AND CREDIT THE GIVER”
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Books of First Entry Across the Business Studies Course They appear all over the Buisness Studies course: Section A, parts b & c in long questions and Q1 Paper 2 (Higher Level). Students who do these questions well, tend to score highly and also do well in the Final Accounts question. In Section A – Double-entry book keeping questions appear in a number of different ways. Ledger Accounts There are two parts/accounts for each transaction. Students are asked to name the account and decide which side, whether it is on the Debit or Credit side. Example Daly Ltd purchased equipment by cheque. Account 1 ____Equipment Account________(Debit side)_____ Account 2 ____Bank Account_____________(Credit side)_____ When goods are purchased or sold there are three main ways of payment: Bank Account (watch out for the words “lodged” or “cheque”) Cash Account Credit All Assets should be recorded in an account named after the asset e.g. Machinery Account All expenses should be recorded in an account named after the expense e.g. Insurance Account All goods purchased should be recorded in an account called Purchases Account. All goods sold should be recorded in an account called Sales Account. The same rule applies to goods returned e.g Sales Returns Account and Purchases Returns Account. Example 2008 Paper Section A Credit Transactions This applies where goods are bought and sold ON CREDIT. This means goods are bought or sold now and payment is not received till a later date. The following is how to treat credit transactions Selling on Credit Sales Account and Debtors Account Buying on Credit Purchases A/C and Creditors Account Returning goods to Creditor Purchases Returns Account and Creditors Account Goods returned by a Debtor Sales Returns A/C and Debtors A/C
Layout of Accounts – T Accounts These types of questions appear all over the paper especially at the end of long questions. Students should complete all parts outlined below. There are two sides to T Accounts: Debit Side Credit Side As mentioned every transaction has two accounts. When posting a T- Account, each transaction will have an entry on both sides. Example Debit Account Name Credit
Divides the T Account in two Monetary value of transaction (Folio) Reference to find other account of transaction Record of the other account Date of transaction When completing T Accounts students must always fill the following in on both the DEBIT AND CREDIT SIDES. Dates Details
Folio €
Balancing T-Accounts These types of questions appear all over the paper from Section A short questions and part (c) of long questions and other long accounting questions. Example Debit BANK ACCOUNT Credit
Add up both Debit and Credit side of account Insert Balance c/d on the smaller side Draw a single line and a double line to denote that the account is finished Put the larger amount in both total boxes i.e. accounts must show same totals to balance Calculate the Balance c/d by adding up the amounts and subtracting it from the total e.g. €11,500 The closing balance should be brought down (b/d) for the beginning of the next month. This closing balance b/d is on the debit side and will be used in the trial balance. Directory: sites -> default -> files files -> The United States and Post-Castro Cuba files -> 9. 5 Political Powers and Achievements Tom Burns- beacon High School files -> Indiana Academic Standards Resource Guide World History and Civilization Standards Approved March 2014 files -> - files -> How to Place Slavery into British Identity files -> Title Publishing Format / Length files -> Oh Freedom! Teaching African American Civil Rights Through American Art at the Smithsonian files -> Eastern State Penitentiary Historic Site’s interpretation of Al Capone’s cell, c. 2013. Al Capone Approved Source for Tour Content Developed by Annie Anderson May 2013 Draft 2 For Web Guiding questions files -> Dr amanda wise & dr jan ali commonwealth of Australia 2008 Download 208 Kb. Share with your friends:
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