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Economic and management sciences

Grade 9

Business, consumer and financial knowledge and skills

Module 21

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

where we get a research paper on Nano chemistry....?
Maira Reply
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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