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Introduction to Double Entry

Introduction to Double Entry. List what you need if you are to set up a Business. Introduction to double entry. For every debit entry there is a corresponding credit entry in every transaction.

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Introduction to Double Entry

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  1. Introduction to Double Entry Ms Marshall 5th Year Accounting

  2. List what you need if you are to set up a Business Ms Marshall 5th Year Accounting

  3. Introduction to double entry • For every debit entry there is a corresponding credit entry in every transaction. • There are four main rules at the centre of double entry and these rules depend on you knowing: assets, liabilities, expenses and revenues (gains). • Asset: Ms Marshall 5th Year Accounting

  4. Liability: • Expenses: • Revenues: Ms Marshall 5th Year Accounting

  5. The Rules Ms Marshall 5th Year Accounting

  6. The rules Ms Marshall 5th Year Accounting

  7. Double entry exercise • For each of the following transactions, identify: • 1) The Accounts • 2) Whether they are an asset, liability, expense or revenue. • 3) Whether they have increased or decreased. • 4) Your debit and your credit. Ms Marshall 5th Year Accounting

  8. Joe’s Car sales ltd • Purchased goods for resale with a cheque, €1,000. Ms Marshall 5th Year Accounting

  9. Purchased car on credit €5,000 Ms Marshall 5th Year Accounting

  10. Paid Light & Heat by direct debit €300 Ms Marshall 5th Year Accounting

  11. Sold car for €7,000 cash (lodged). Ms Marshall 5th Year Accounting

  12. Bought computer €1,200, paid by cheque. Ms Marshall 5th Year Accounting

  13. Received loan €20,000 Ms Marshall 5th Year Accounting

  14. Sold stock on credit, €400. Ms Marshall 5th Year Accounting

  15. Wrote off a bad debt of €200 Ms Marshall 5th Year Accounting

  16. Received interest on savings €42. Ms Marshall 5th Year Accounting

  17. 31/12/12: Depreciation charge for Buildings for the year is €4,000. Complete the depreciation and provision for depreciation accounts. Depreciation Provision for Depreciation 1/1/12 Balance b/d 25,000 Ms Marshall 5th Year Accounting

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