The net difference (or balance ) so determined is put on the side of the account which is smaller so as to bring the two sides to equality and a reference is given that it has been carried down (c/d) from the other side. In the next period, a reference is given that the open balances has been brought forward or brought down (B/f or b/d) from the previous period.
Revision questions:
1. Briefly explain the following types of ledger accounts .
a. Personal account (b) Real accounts (c) Nominal accounts
2. what do you understand by:
(a) posting (b) double entry principle (c)account balancing
3. for each of the following transactions, state which account to be debited, and the account to be credited
a. bought motor van for cash
b. bought office furniture on credit from Eze
a. introduced capital into the business in cash
b. received cheque from a debtor
c. paid cheque to a creditor
d. bought good or credit from Nwofoke
e. sold office machinery for cash
4. the following relate to the business of idris ahama for the month of November, 2005
nov. 1 opening balances : cash 56,000
bank 30,000
2. cash sales 40,000
4 cash purchases 35,000
6 received M8550, settlement of a debt pf M10,000 from Okeafor
9 paid advertising expenses by cheque 1000
11 cash sales to date 30,000
13paid rent in cash 5000
16 paid mohammed cash 8000
discount received from mohammed 500
18 purcahsed goods by cheque 40,000
19 cash sales paid into bank 65,000
21 paid cash into bank 25,000
24 cash sales 35000
26 paid repair charges in cash 5000
28 withdrew cash from bank for office used 20,000
29 bought office machine in cash 10,000
30 paid wages and salaries in cash 40,000
31 cash sales 38,000
required:
record the following transactions in the appropriate book of account and transfer them to the ledger account
idris aloma
no 4b ledger
dr capital account cr
nov 31 blaances c/d 136,000 nov. 1 balance b/d 136,000
dec. 1 balance b/d 136,000
dr sales account
N N
No. 31 balances c/d 208,000 Nov 2 cash 40000
Nov 11 cash 30,000
Nov 19 65,000
Nov 24 cash 35,000
Nov 31 cash 38,000
208,000 208,000
dec 1 balance b/d 208
Be the first to comment