{"id":2292,"date":"2023-10-02T11:58:51","date_gmt":"2023-10-02T11:58:51","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=2292"},"modified":"2023-10-02T11:59:20","modified_gmt":"2023-10-02T11:59:20","slug":"week-4-ss1-second-term-book-keeping-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-4-ss1-second-term-book-keeping-notes\/","title":{"rendered":"Week 4 – SS1 Second Term Book Keeping Notes"},"content":{"rendered":"

WEEK FOUR
\n<\/strong>PRINCIPLE OF DOUBLE ENTRY
\n<\/strong>Definition: <\/strong>Double entry book keeping is the system of keeping account, which take advantages of the two-fold aspect of every transaction, whereby one account that receives is debited and another account, which gives, is credited.
\nThe following simple rules of double entry should be fully understood and memorized.
\na.\u00a0\u00a0\u00a0\u00a0for every credited entry in an account there must be a corresponding debit entry in another account.
\nb.\u00a0\u00a0\u00a0\u00a0For every debit entry in an account, there must be a corresponding credit entry in another account.
\nc.\u00a0\u00a0\u00a0\u00a0All transactions must be recorded in two accounts, one account is debited and another account credited.<\/p>\n

\u00a0APPLICATION OF THE PRINCIPLES OF DOUBLE ENTRY
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Any transaction involves two accounts.
\na.\u00a0\u00a0\u00a0\u00a0Receiving account or receiver.
\nb.\u00a0\u00a0\u00a0\u00a0Giving account or giver.
\n\"\"\/
\n\t\ta.\u00a0\u00a0\u00a0\u00a0Dr. Receiving account\u00a0\u00a0\u00a0\u00a0With value it receives
\nb.\u00a0\u00a0\u00a0\u00a0Cr. Giving account\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0With value it gives out.<\/p>\n

\u00a0Illustration: Complete the following table. Account to be.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\nDebited<\/td>\nCredited<\/td>\n<\/tr>\n
i.<\/td>\nStart business with N800 cash<\/td>\nCash <\/td>\nCapital<\/td>\n<\/tr>\n
ii.<\/td>\nGoods sold on credit to Mr. Ayo<\/td>\nAyo<\/td>\nSales<\/td>\n<\/tr>\n
iii.<\/td>\nWe paid creditor Mr. Olu by cheque<\/td>\nMr. Olu<\/td>\nBank<\/td>\n<\/tr>\n
iv.<\/td>\nGoods bought by cheque<\/td>\nPurchases<\/td>\nBank<\/td>\n<\/tr>\n
v.<\/td>\nSold goods for cash<\/td>\nCash<\/td>\nSales<\/td>\n<\/tr>\n
vi.<\/td>\nGoods were returned to Mr. Kufor<\/td>\nKufor<\/td>\nReturns Outwards<\/td>\n<\/tr>\n
vii.<\/td>\nBiodun lent us N80 cash<\/td>\nCash<\/td>\nLoan (Biodun)<\/td>\n<\/tr>\n
viii.<\/td>\nTook N20 of the cash and paid into the bank<\/td>\nBank<\/td>\nCash<\/td>\n<\/tr>\n
ix.<\/td>\nBought a motor van by cheque<\/td>\nMotor van<\/td>\nBank<\/td>\n<\/tr>\n
x.<\/td>\nGoods were returned to Olotu<\/td>\nOlotu<\/td>\nReturns Outwards<\/td>\n<\/tr>\n
xi.<\/td>\nPaid further cash into the business as capital<\/td>\nCash<\/td>\nCapital<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\u00a0POSTING OF TRANSACTIONS FROM CASH BOOK TO LEDGER
\n<\/strong>POSTING TO THE LEDGERS.
\n<\/strong>Posting is the act of using one book as a means for entering the items to other accounts so as to complete double entry. When applying the principle of double entry, students are advised to write up the cash book first and then transfer to the ledgers.
\nRules to be followed
\n1.\u00a0\u00a0\u00a0\u00a0All items on the debit side of the cash book must be transferred to the credit side of individual ledgers.
\n2.\u00a0\u00a0\u00a0\u00a0All items on the credit side of the cash book must be posted to the debit side of individual ledgers<\/p>\n

\u00a0Illustration:
\nEnter the following in a two column cash book. Balance off at the end of the month and post to all necessary ledgers.
\nJune 1: Started business with cash N3,200
\nJune 2: The following paid us by cheque, Okon N500 : Abbey N600
\nJune 3: Cash sales paid directly into the bank N400
\nJune 5: Paid rent by cash N180
\nJune 6: We paid the following account by cheque; Sope N520 : Ladi N300
\nJune 7: Withdrew cash from the bank for business use N70
\nJune 8: Commission received by cheque N450
\nJune 10: Banked cash N150
\nJune 12: Withdrew cash from bank for personal use N30
\nJune 15: Paid wages by cash N250
\nJune 16: Bought motor van by cheque N20
\nJune 18: Cash sales N1,000
\nJune 20: Bought stationery paying by cash N170
\nJune 22: Received N200 cheque from Okete
\nJune 23: Cash purchases N550
\nJune 24: Cash drawings N120
\nJune 25: Bought goods by cheque N115
\nJune 27: Yinka lend us N1,020 cash.
\nJune 28: Paid motor expenses by cheque N18
\nJune 30: The proprietor put further cash N1,320 into the business as capital.<\/p>\n

\u00a0ASSIGNMENT
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Write up the two column cash book in simplified and amplified book-keeping and accounting page 56 revision question 5x.
\n\u00a0\u00a0\u00a0\u00a0Note: Post the entries from the prepared two column cash to all relevant ledger account
\n2.\u00a0\u00a0\u00a0\u00a0You are required to write up the accounts for the following transactions.
\nJan. 1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Started business with N12,000 in the bank.
\nJan. 2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bought stationery on credit from Okete N200
\nJan. 3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bought goods on credit from Ogundele N3,000
\nJan. 6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paid rent in cash N30
\nJan. 8\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Sold goods on credit to Ajala N500
\nJan. 12\u00a0\u00a0\u00a0\u00a0We returned goods to Ogundele N150
\nJan. 19\u00a0\u00a0\u00a0\u00a0Paid wages in cash N30.<\/p>\n

\u00a0
\n\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

WEEK FOUR PRINCIPLE OF DOUBLE ENTRY Definition: Double entry book keeping is the system of…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,195],"tags":[],"class_list":["post-2292","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss1-book-keeping"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=2292"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2292\/revisions"}],"predecessor-version":[{"id":2293,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2292\/revisions\/2293"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=2292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=2292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=2292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}