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The double entry system:

The double entry system:. balancing off accounts. by Wu Sau Ming & Kan Hoi Mei (4A). D uring the month we sold a total of $444 goods to Tan, and have been paid a total of $444 by him. At the end of August, we balance off the account as follows:. 444. 444. The double entry system:.

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The double entry system:

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  1. The double entry system: balancing off accounts by Wu Sau Ming & Kan Hoi Mei (4A) During the month we sold a total of $444 goods to Tan, and have been paid a total of $444 by him. At the end of August, we balance off the account as follows: 444 444

  2. The double entry system: Closing balances If an account contains only one entry on each side and they are equal, totals are unnecessary. The correct procedure will be:

  3. The double entry system: Closing balances If you add the figures you will see that the debit side adds up to $482 and the credit side adds up to $158. You should be able to see how the difference $314 (I.e. $428-$158) enters into the account. Step 3: Finally enter balance to start off entries for the following month. Aug 31 Balance c/d 324 482 482 Sep 1 Balance b/d 324 Step 1: Enter balance here so that totals will be equal. Step 2: Now enter totals level with each other.

  4. The double entry system: Closing balances Step 3: Finally enter balance to start off entries for the following month. Step 1: Enter balance here so that totals will be equal. If you add the figures you will see that Aug 31 Balance c/d 264 364 364 Sep 1 Balance b/d 264 Step 2: Now enter totals level with each other.

  5. The double entry system: balancing off accounts Suggested Accounts Web page: www.accountantsonline.com.hk Multiple Choice Questions What was the balance on the following account on 30 June 2005? A A debit balance of $849. B A credit balance of $829. C A credit balance of $849. D There is a nil balance on the account.

  6. The double entry system: Closing balances Try it again! You will get better!

  7. The double entry system: Closing balances Right! You are best!

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