PPT - Principles Of Double Entry | Accountancy and Financial Management - B Com PDF Download

 Page 1


ACC106      
Chapter 3
PRINCIPLES OF DOUBLE ENTRY
( THE RECORDING PROCESS)
Page 2


ACC106      
Chapter 3
PRINCIPLES OF DOUBLE ENTRY
( THE RECORDING PROCESS)
LEARNING OBJECTIVES
Page 3


ACC106      
Chapter 3
PRINCIPLES OF DOUBLE ENTRY
( THE RECORDING PROCESS)
LEARNING OBJECTIVES
3.1 Introduction
Page 4


ACC106      
Chapter 3
PRINCIPLES OF DOUBLE ENTRY
( THE RECORDING PROCESS)
LEARNING OBJECTIVES
3.1 Introduction
DOUBLE ENTRY PRINCIPLES
Classification DEBIT CREDIT
Assets increase in Assets decrease in Assets
Liability decrease in Liabilities increase in Liabilities
Capital/ Owner’s equity decrease in Owner’s Equity increase in Owner’s Equity
Revenue decrease in Revenue increase in Revenue
Expenses increase in Expenses decrease in Expenses
Page 5


ACC106      
Chapter 3
PRINCIPLES OF DOUBLE ENTRY
( THE RECORDING PROCESS)
LEARNING OBJECTIVES
3.1 Introduction
DOUBLE ENTRY PRINCIPLES
Classification DEBIT CREDIT
Assets increase in Assets decrease in Assets
Liability decrease in Liabilities increase in Liabilities
Capital/ Owner’s equity decrease in Owner’s Equity increase in Owner’s Equity
Revenue decrease in Revenue increase in Revenue
Expenses increase in Expenses decrease in Expenses
DOUBLE ENTRY PRINCIPLES FOR ASSETS
?
The double entry principle for assets is:
Assets a/c
Debit Credit
To record increase in Assets To record decrease in Assets
i.e Jan 1  Bought equipment paying by cheque RM 1,000
Dr. Equipment a/c RM 1,000
Cr. Bank a/c RM 1,000
Equipment a/c
Jan 1      Bank 1,000
Bank a/c
Jan 1 Equipment 1,000