Professional Documents
Culture Documents
OF
ACCOUNTING
ASSETS
ALL ECONOMIC RESOURCES OWNED BY A BUSINESS TO
GET FUTURE BENEFITS
FOR EXAMPLE
CASH, MACHINE, EQUIPMENT, BUILDING
EXPENSE
AMOUNT PAID FOR BUSINESS
ACTIVITIES
RENT EXPENSE
SALARIES EXPENSE
REPAIR EXPENSE
INSURANCE EXPENSE
UTILITIES CHARGES
REVENUE
SOURCES TO EARN INCOME
COMMISSION
INCOME
SERVICE INCOME
SALES REVENUE
INTEREST INCOME
RENT INCOME
LIABILITY
AMOUNT DUE ON BUSINESS
LOAN
CAPITAL
AMOUNT INVESTED BY OWNER
IN BUSINESS
NATURE OF ACCOUNT
1.
2.
3.
4.
5.
ASSETS
EXPENSE
LIABILITIES
REVENUE
CAPITAL/OWNERS EQUITY
DEBIT
CREDIT
LEFT
CREDIT
RIGHT SIDE OF ACCOUNT
OF
ASSET
INCREASE OF
EXPENSE
DECREASE OF
LIABILITY
DECREASE OF
REVENUE
DECREASE OF
CAPITAL
DECREASE
OF
ASSET
DECREASE OF
EXPENSE
INCREASE OF
LIABILITY
INCREASE OF
REVENUE
INCREASE OF
CAPITAL
OF ACCOUNT ( at least
two)
NATURE OF ACCOUNT ( any of
five)
INCREASE OR DECREASE
DEBIT OR CREDIT
CASH A/C
ASSET
INCREASE
DECREASE
DEBIT
A/C
ASSET
CREDIT
A/C
A/C
ASSET
INCREASE
DECREASE
DEBIT
CASH
ASSET
CREDIT
SUPPLIES
A/C
ASSES
INCREASE
DECREASE
DEBIT
CASH
ASSET
CREDIT
A/C
A/C
ASSET
INCREASE
DECREASE
DEBIT
CASH
ASSET
CREDIT
A/C
A/C
ASSET
INCREASE
DECREASE
DEBIT
BANK
ASSET
CREDIT
A/C
ASSET
INCREASE
DECREASE
DEBIT
A/C
CASH
ASSET
CREDIT
A/C
BANK
ASSET
INCREASE
DECREASE
DEBIT
CREDIT
EXPENSE
EXPENSE
INCREASE
DECREASE
DEBIT
CASH
ASSET
CREDIT
FEE INCOME
REVENUE
INCREASE
CREDIT
RECEIVABLE(AMIR)
ASSET
INCREASE
DEBIT
FEE INCOEM
REVENUE
INCREASE
CREDIT
A/C
RECEIVABLE(AMIR)
ASSET
ASSET
INCREASE
DECREASE
DEBIT
CREDIT
PURCASHE COMPUTER ON
CREDIT FROM REHMAN
RS.30,000
EQUIPMENT
ASSET
INCREASE
DEBIT
A/C PAYABLE(Rehman)
LIABILITY
INCREASE
CREDIT
PAID BY CHEQUE TO
MR. REHMAN RS. 10,000
A/C
PAYABLE(Rehman)
A/C
LIABILITY
DECREASE
DEBIT
BANK
ASSET
DECREASE
CREDIT
MR.ABID INVESTED IN
BUSINESS RS.100,000
CASH
A/C
ASSET
INCREASE
DEBIT
CAPITAL-ABID
CAPITAL
INCREASE
CREDIT
CASH A/C
ASSET
DECREASE
CREDIT
MR.ABID
GENERAL JOURANL
DATE DESCRIPTION
P/R DEBIT
CREDIT
MR.ABID
GENERAL JOURANL
DATE DESCRIPTION
1 Jan
Furniture a/c
Cash a/c
(Purchase furniture
by cash)
P/R DEBIT
CREDIT
4,000
4,000
MR.ABID
GENERAL JOURANL
DATE
DESCRIPTION
1 Jan
Furniture a/c
Cash a/c
(Purchase furniture by
cash)
Machine a/c
Cash a/c
(Purchase machine by
cash)
Office supplies
Cash a/c
(Purchase supplies )
2 Jan
3 Jan
P/R
DEBIT
CREDIT
4,000
4,000
5,000
5,000
700
700
Class activity
1.
2.
3.
4.
5.
6.
7.
8.
9.
Class activity
Purchase
CLASS ACTIVITY
Purchase
office building of
$256,600 of which $ 56,600 was
applicable to the land. A cash
payment of $156,600 was made
and accept a note for the
balance.
Prepare
Journal entry
ANSWER
DR
CR
BUILDING-----------200,000
LAND------------------56,600
CASH---------------------156,600
NOTE PAYABLE-------100,000
CLASS ACTIVITY
Five
Prepare
Journal entry
ANSWER
DR
CR
EQUIPMENT ---------- 2500
CASH----------------------------1500
A/C PAYABLE(ABC)--------1000
CLASS ACTIVITY
One
Prepare
Journal entry
ANSWER
DR
CR
A/c payable (ABC Co) 500
Equipment
500
CLASS ACTIVITY
Sold
Prepare
Journal entry
ANSWER
DR
CR
Cash-------------------------
26,000
A/c Receivable-----------100,000
Plant--------------------------126,000
CLASS ACTIVITY
Mr Ahmer borrowed from MCB on five year term
Rs.1 million at 11.5% interest per annum. This
amount is deposited into business bank
account.
Prepare Journal entry
ANSWER
DR
CR
Bank
a/c --------------1,000,000
Loan payable------------------1,000,000
CLASS ACTIVITY
CLASS ACTIVITY
Paid