books of original entry and ledgers n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Books of Original Entry ( 原始分錄簿 ) and Ledgers ( 分類帳 ) PowerPoint Presentation
Download Presentation
Books of Original Entry ( 原始分錄簿 ) and Ledgers ( 分類帳 )

Loading in 2 Seconds...

play fullscreen
1 / 23

Books of Original Entry ( 原始分錄簿 ) and Ledgers ( 分類帳 ) - PowerPoint PPT Presentation


  • 166 Views
  • Uploaded on

3. Books of Original Entry ( 原始分錄簿 ) and Ledgers ( 分類帳 ). References : Chapter 11-14, 19. A Introduction. Books to record all the T accounts. The expansion of the business, transactions increase , the numbers of T accounts are numerous.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Books of Original Entry ( 原始分錄簿 ) and Ledgers ( 分類帳 )' - candy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
books of original entry and ledgers

3

Books of Original Entry (原始分錄簿) and Ledgers (分類帳)

References:

Chapter 11-14, 19

a introduction
A Introduction
  • Books to record all the T accounts.
  • The expansion of the business, transactions increase,the numbers of T accounts are numerous.
  • Thus the T accounts are classified into 3 Ledgers and 7 Books (Books of Original Entry).
b books of original entry
B Books of Original Entry

1 Sales Journal ( Day Book)

2 Purchases Journal (Day Book)

3 Returns Inwards Journal (Day Book)

4 Returns Outwards Journal (Day Book)

5 Cash Book【Explain later】

6 Petty Cash Book【Explain later】

7 Journal【Explain later】

slide4

Transactions

Classifying the transactions

Credit

Sales

Credit

Purchases

Returns

Inwards

Returns

Outwards

Cash and

cheque

receipts

and

payment

Others

Sales

Journal

Purchases

Journal

Returns

Inwards

Journal

Returns

Outwards

Journal

Cash Book/

Petty Cash

Book

Journal

Posting to the double entry

accounts in the ledgers:

Sales ledger

Purchases ledger

General ledger

p. 116

c ledgers
C Ledgers
  • 3 kinds of ledgers:

Sales ledger-records each debtor’s T A/C

Purchases ledger-records each creditor’s T A/C

General ledger -records the rest of the accounts, such as expenses, Fixed assets, capital, etc.

d sales journal and sales ledger
D Sales Journal and Sales Ledger

D1 Sales Journal

  • Record all credit sales
  • There is no debit items in “Sales A/C”, so the “Sales A/C” transforms to a statement(表), i.e, Sales Journal.
examples of sales journal
Examples of Sales Journal:

The credit sales transactions in January, 2008 of Green Co. are as follow:

  • Jan 5, sold $500 goods on credit to Rabbit Co. and offered 1% trade discounts* to Rabbit Co.
  • Jan 15, sold $100 goods on credit to Pepper Co. If Pepper Co. pays the debt within 1 month, Pepper can enjoy 2% cash discounts**。
  • Jan 28, sold $500 goods to Pump Co. and offered 1% trade discounts. If Pump Co. pays the debt within 1 weeks, Pump can enjoy 2% Cash discounts.

You are required to prepare:

The Sales Journal to record the above transaction.

slide8
*Trade discount:
  • offered to customers to attract large-quantity transactions.
  • Directly deducted from the list price, no double entry is required.

**Cash discounts:

  • Encourage the early repayment of debts
  • The entry is recorded at the time of repayment of debts.
slide9
Sales Journal

2008 Particular Inv. No. $

Jan 5 Rabbit Co 495

15 Pepper Co 100

28 Pump Co 495

31 Transferred to sales A/C 1090

(in General Ledger)

slide10
D2 Sales Ledger
  • After recording each transaction in the Sales Journal, the transaction is posted to the Debtors A/C in the Sales Ledger.
  • At the end of month or year, the total of the Sales Journal is posted to the “Sales A/C” in the General Ledger.
slide11

Sales Journal

Posting each sales transactions

Posting the total to the Sales A/C

(Record each credit sales)

Sales Ledger

General Ledger

Debtors: Rabbit Co.

Dr. $

Sales A/C

Cr. $

e purchases journal and purchases ledger
E Purchases Journal and Purchases Ledger

E1 Purchases Journal

  • Record all credit purchases
  • There is no credit items in “Purchases A/C”, so the “Purchases A/C” transforms to a statement(表), i.e, Purchases Journal.
examples of purchases journal
Examples of Purchases Journal:

The credit purchases transactions of Cucumber Co. in February 2008 are as follows:

  • Feb 6, bought goods $200 on credit from Celery Co., and received 1% trade discounts.
  • Feb 17, bought $100 goods on credit from Carrot Co. If the debt is repaid within 1 week, 2% cash discounts is offered.
  • Feb 27, bought $200 goods on credit from Spinach Co, and received 1% trade discounts. If the debt is repaid within 1 week, 2% cash discounts is offered.

You are required to prepare:

The Purchases Journal to record the above transaction.

slide14
Purchases Journal

2006 Particular Inv. No. $

Feb 6 Celery Co. 198

17 Carrot Co. 100

27 Spinach Co. 198

28 Transferred to Purchases A/C 496

(in General Ledger)

slide15
E2 Purchases Ledger
  • After recording each transaction in the Purchases Journal, the transaction is posted to the Creditors A/C in the Purchases Ledger.
  • At the end of month or year, the total of the Purchases Journal is posted to the “Purchases A/C” in the General Ledger.
slide16

Purchases Journal

Posting the total to the Purchases A/C

Posting each purchases transaction

(Record the credit purchases)

General Ledger

Purchases Ledger

Purchases

Dr. $

Creditors: Celery Co

Cr. $

f returns inwards journal
F Returns Inwards Journal(銷貨退回簿)
  • Customers (Debtors) demand to return goods to our company. When we accept the goods returned, we issue a 【Credit note】to the customers.
  • Examples:

Goods returned to Cucumber Co in March, 2006 are as follows:

    • March 1, Rabbit Co. returned $50 goods to us (After deducted 1% trade discounts).
    • March 10, Pepper Co. returned $10.

You are required to prepare:

The Returns Inwards Journal to record the above transaction.

slide18
Returns Inwards Journal

2006 Particular Credit Note No. $

Mar 1 Rabbit Co. 50

10 Pepper Co. 10

31 Transferred to returns inwards A/C 60

(in General Ledger)

slide19

Returns Inwards Journal

Posting the total

to the returns inwards A/c

Posting each returns transaction

(Record each items in Credit Notes)

General Ledger

Sales Ledger

Returns Inwards A/C

Dr. $

Debtors: Carrot Co.

Cr. $

g returns outwards journal
G Returns Outwards Journal
  • Our company demands to returns the goods to suppliers (Creditors). We issue a 【Debit note】with the goods returns to the suppliers.
  • Examples:

Cucumber Co returned goods in March, 2006 are as follows:

    • March 1, returned $20 goods to Celery Co. (After deducted 1% trade discounts).
    • March 5, returned $10 goods to Carrot Co.

You are required to prepare:

The Returns Outwards Journal to record the above transaction.

slide21
Returns Outwards Journal

2006 Particular Debit Note No.$

Mar 1 Celery Co. 20

5 Carrot Co. 10

31 Transferred to returns Outwards A/C 30

(in General Ledger)

slide22

Returns Outwards Journal

Posting each transaction in debit notes

Posting the total to the Returns Outwards A/C

(Recording each items in Debit Notes)

Purchases Ledger

General Ledger

Creditors: Celery Co.

Dr. $

Returns Inwards A/C

Cr. $

h classification of t accounts t
H Classification of T Accounts T字帳的分類

Accounts

Personal

Accounts

Impersonal

Accounts

人名帳戶

非人名帳戶

Debtors

(Sales Ledger)

Creditors

(Purchases

Ledger)

Real Accounts

實帳戶

Nominal

Accounts 虛帳戶

Records

assets

and

Liabilities

in General

Ledger

Records

expenses,

incomes,

and Capital

in General

Ledger