1. Double Entry
System 2
DR CR

2. The Accounting System
to record transactions
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3. Objectives
At the end of the lesson, students should be able to :
• know what are General Journal and Special
Journals.
• able to record simple business transactions
using the Double Entry Accounting System
into the General / Special Journals.

4. An Overview…
General Special
Journal Journals
Ledger Accounts
Trial Balance
Adjustments
Prepare Simple Financial Statements

5. GENERAL
JOURNAL
Date Particulars Debit Credit
$ $

6. (Debit) (Credit) (Credit)
Assets = Owner’s Equity + Liabilities
Debit Credit Credit
Credit Debit Debit

7. a) John began business with cash in
hand $5000 on 1 January 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
Jan 1 Cash in hand 5000
Capital-John 5000
John began business with cash $5000.

8. b) John began business with a bank
loan of $8000 on 1 January 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
Jan 1 Cash in hand 8000
Loan from bank 8000
John began business with a bank loan
of $8000.

9. c) John used $2000 to buy a motor
vehicle
for business use on 16 March 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
Mar 16 Motor Vehicle 2000
Cash 2000
John bought a motor vehicle worth
$2000.

10. d) John repaid bank loan of $1500
using cash
on 27 Oct 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
Oct 27 Loan from Bank 1500
Cash 1500
John repaid the bank loan.

11. e) John sold goods at $6000 on credit to
ABC Ltd on 26 November 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
Nov 26 Debtors (ABC Ltd) 6000
Sales 6000
Sales worth $6000 to ABC Ltd.

12. f) Stock count was conducted and
closing stock
was found to be $10,000 on 31 Dec
2000. General Journal
Date Particulars Debit Credit
2000 $ $
Dec 31 Stock 10,000
Trading 10,000
To record closing stock worth
$10,000.

13. It is common for the owner to draw money or
goods from the firm for personal use anytime.
According to the Accounting Entity concept,
we must record the event even though he is
the owner of the firm.
What do you
call this?
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14. It is common for the owner to draw money or
goods from the firm for personal use anytime.
According to the Accounting Entity concept,
we must record the event even though he is
the owner of the firm.
DRAWINGS

15. g) The owner withdrew cash $1000 for
his
personal use on 1 April 2000.
General Journal
Date Particulars Debit Credit
2000 $ $
April 1 Drawings 1000
Cash 1000
To record drawings of $1000 cash.

16. An Overview…
General Special
Journal Journals
Ledger Accounts
Trial Balance
Adjustments
Prepare Simple Financial Statements

17. 4 SPECIAL
JOURNALS
Purchases Journal
Returns Outwards Journal
Sales Journal
Returns Inwards Journal

18. Reason for the purchases journal…
General Journal
Date Particulars Debit Credit
2000 $ $
Mar 2 Purchases 200
Creditors-ABC 200
April 7 Purchases 600
Creditors-Peter 600
May 12 Purchases 1000
Creditors-PCK 1000

19. Purchases Journal… Dr
Purchases
Cr
Creditors
Purchases Journal
Date Particulars Cr
2000 $
Mar 2 Creditors-ABC 200
April 7 Creditors-Peter 600
May 12 Creditors-PCK 1000
Total purchases to be debited 1800

20. Returns Outwards Journal… Dr Creditors
Cr
Returns
Outwards
Returns Outwards Journal
Date Particulars Dr
2000 $
Mar 5 Creditors-SBS 100
April 9 Creditors-David 600
May 26 Creditors-PCK 500
Total returns outwards to be credited 1200

21. Reason for the Sales Journal…
General Journal
Date Particulars Dr Cr
2000 $ $
Mar 2 Debtors-ABC 200
Sales 200
April 7 Debtors-Peter 600
Sales 600
May 12 Debtors-PCK 1000
Sales 1000

22. Sales Journal… Dr Debtors
Cr Sales
Sales Journal
Date Particulars Dr
2000 $
Mar 2 Debtors-ABC 200
April 7 Debtors-Peter 600
May 12 Debtors-PCK 1000
Total sales to be credited 1800

23. Returns Inwards Journal… Dr Returns
Inwards
Cr
Debtors
Returns Inwards Journal
Date Particulars Cr
2000 $
Mar 9 Debtors-ABC 100
April 9 Debtors-Peter 200
May 24 Debtors-PCK 300
Total returns inwards to be debited. 600

24. Tips to remember…
IN OUT
Debit Credit
Returns Returns
Inwards Outwards