AccforMgrsUnit2….pptVIP

Trial Balance Example Trial Balance Example Transactions With GST * Exercises Complete Exercise 2.9 – 2.11 * Posting to the General Ledger After recording transactions, the next step is to post to the general ledger. 3 steps: 1. Set up ledger accounts that relate to each transaction 2. Identify the Debit or Credit rules for ledger account identified 3. Record the date, particulars and amount on the correct side of each ledger account in the general ledger * Posting to the General Ledger – Example p40 Eg. Posting to the ledger from the analysis chart 1. Owner contributes $40k capital Ledgers affected: 1) Cash – ASSET – increase by debiting $40k 2) Capital – OWNER’S EQUITY – increase by crediting $40k * 2). Freight expense paid in cash, including GST NOTE – MISTAKE IN BOOK p40: SHOULD BE $200 plus $20 GST Ledgers affected: 1) Cash – ASSET – decrease by crediting $220 2) Freight – EXPENSE – increase by debiting $200 3) GST Paid - NEGATIVE LIABILITY - increase by $20 * Remember to update balance 200 20 220 * 3). Purchases paid in cash, including GST Ledgers affected: 1) Cash – ASSET – decrease by crediting $4,400 2) Purchases – EXPENSE – increase by debiting $4000 3) GST Paid – NEGATIVE LIABILITY – INCREASE BY DEBITING $400 * 4). Credit Sale, including GST Ledgers affected: 1) Sales – REVENUE – increase by crediting $6000 2) Trade Debtor – ASSET – increase by debiting $6600 3) GST Collected –LIABILITY – INCREASE BY CREDITING $600 Posting to the General Ledger – Example p40 Work through each transaction to ensure you are understand which accounts are affected, whether they are an A,L,E,R or OE, and whether they need to be debited or credited to increase or decrease * Posting to the General Ledger – Example p40 2nd last transaction – customer earlier bought goods on credit, is now making payment 1) Cash – ASSET – debit to increase $6000 2) Trade Debtor Collins – ASSET – earlier increased it, but now it is no longer an asset, as he i