# 4.6 Ledger entries

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## Ledger entries

section 2: ledger accounts

ACTIVITY1:

To do ledger entries

[LO 3.3]

An account is a separate record in which all transactions for a particular item are entered.

An account takes the form of a T and comprises three sections, namely:

• the name of the item, for example, bank account;
• the left-hand side, called the debit side, and
• the right-hand side, called the credit side.
• For example:

Debiting an account means to do an entry on the debit side. Crediting an account means to do an entry on the credit side.

Every transaction affects at least two accounts. The one account is debited and the other account is credited. This is known as the double-entry system . In the details column of the ledger account the name of the other account involved in the transaction appears, for example:

This means that cash sales to the value of R1 000 were made. The two accounts are therefore bank and sales. The double entry will be as follows:

The following rules must be taken into account in the case of entries in ledger accounts:

• When an asset is increased, the bank account is debited
• When an asset is reduced, the bank account is credited
• When a liability is increased, the liabilities account is credited
• When a liability is reduced, the liabilities account is debited
• When capital is increased, the capital account is credited
• When capital is reduced, the capital account is debited
• When income is increased, the income account is credited
• When income is reduced, the income account is debited
• When expenditure is increased, the expenditure account is debited
• The opening balance of accounts that increase on the credit side, appears on the credit side
• The opening balance of accounts that increase on the debit side, appears on the debit side

ASSIGNMENT 1:

• Determine the effect of Ledger Accounts on A = O + L by analysing the transactions in the table.

1. Owner deposits some of his personal funds as capital in the bank account of the business.

2. Equipment is purchased and paid by cheque.

3. A vehicle is purchased on credit.

4. Cash is received for services provided.

5. Salaries are paid by cheque.

6. The amounts owed to creditors are paid.

7. Money is received from debtors.

Table for assignment 1

 GENERAL LEDGER NO. ACCOUNT DEBITED ACCOUNT CREDITED A O L

ASSIGNMENT 2:

• Answer the following questions according to the columns in the table:
 Current income Consumer goods Fuel Withdrawals Change Salaries Water and Electricity Land and Buildings Debitors control Rental income Advertisements Equipment Telephone Selling costs Cost of materials Trading inventory Trade licence Stationery Packaging material Wages Repairs Sales Bank Rental expenditure Vehicles Creditors control Capital

(a) Arrange the accounts in the columns in the table.

(b) Indicate by means of +, - or 0 next to the account whether an increase in it will increase or reduce the ownership interest or leave it unchanged.

(c) Indicate by means of dt. or cr. next to the account whether the account will have a debit or credit opening balance.

table for assignment 2

ASSIGNMENT 3:

• Do the following debit and credit entries on the ledger sheet (below):

1 The owner invests R12 000 as capital in the business

2 A vehicle is purchased on credit from TP Motors

3 Fuel is purchased and paid by cheque

4 Cash for service provided is received

5 Salaries are paid by cheque

6 Goods on credit to J. van Schalkwyk are supllied

7 Rent by cheque to A and B Lessors is paid

8 The owner takes cash for his personal use

9 Materials are purchased on credit from AB Suppliers

10 Equipment from Model Suppliers and pays by cheque is purchased

11 Receives the amount owing from J. van Schalkwyk

12 Part of the debt to TP Motors is paid

13 Goods are sold for cash

Table for assignment 3

 GENERAL LEDGER NO. ACCOUNT DEBITED ACCOUNT CREDITED A O L 1 2 3 4 5 6a 6b 7 8 9 10 11 12 13a 13b

## Assessment

 Learning Outcomes(LOs) LO 3 MANAGERIAL, Consumer and Financial Knowledge and SkillsThe learner will be able to demonstrate knowledge and the ability to apply responsibly a range of managerial, consumer and financial skills. Assessment Standards(ASs) We know this if the learner : 3.1 completes a basic income statement and balance sheet for a service and retail business; 3.2 investigates the public relations, social responsibility and environmental responsibility strategies and actions of different businesses and organisations; 3.3 completes cash and credit transactions in the books of service and retail businesses; 3.4 uses keyboard skills and function keys in developing, storing, retrieving and editing business documentation; 3.5 analyses financial statements for decision-making at a basic level; 3.6 differentiates between the forms of credit purchases.

## Memorandum

ACTIVITY1

ASSIGNMENT 1

ACTIVITY 1

ASSIGNMENT 2

ACTIVITY1

ASSIGNMENT 3

#### Questions & Answers

anyone know any internet site where one can find nanotechnology papers?
research.net
kanaga
Introduction about quantum dots in nanotechnology
what does nano mean?
nano basically means 10^(-9). nanometer is a unit to measure length.
Bharti
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
absolutely yes
Daniel
how to know photocatalytic properties of tio2 nanoparticles...what to do now
it is a goid question and i want to know the answer as well
Maciej
characteristics of micro business
Abigail
for teaching engĺish at school how nano technology help us
Anassong
Do somebody tell me a best nano engineering book for beginners?
there is no specific books for beginners but there is book called principle of nanotechnology
NANO
what is fullerene does it is used to make bukky balls
are you nano engineer ?
s.
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
Tarell
what is the actual application of fullerenes nowadays?
Damian
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
Tarell
what is the Synthesis, properties,and applications of carbon nano chemistry
Mostly, they use nano carbon for electronics and for materials to be strengthened.
Virgil
is Bucky paper clear?
CYNTHIA
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
NANO
so some one know about replacing silicon atom with phosphorous in semiconductors device?
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
Do you know which machine is used to that process?
s.
how to fabricate graphene ink ?
for screen printed electrodes ?
SUYASH
What is lattice structure?
of graphene you mean?
Ebrahim
or in general
Ebrahim
in general
s.
Graphene has a hexagonal structure
tahir
On having this app for quite a bit time, Haven't realised there's a chat room in it.
Cied
what is biological synthesis of nanoparticles
what's the easiest and fastest way to the synthesize AgNP?
China
Cied
types of nano material
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
how did you get the value of 2000N.What calculations are needed to arrive at it
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