2. What is an Account ?
An account is a brief and
systematic record of
transactions which are
similar in nature.
3. Type Represent Examples
Real Physically tangible things Tangibles - Plant and
in the real world and certain Machinery, Furniture and
intangible things not having Fixtures, Computers and
any physical existence Information Processing
Equipment etc. Intangibles -
Goodwill, Patents and
Copyrights
Personal Business and Legal Entities Individuals, Partnership
Firms, Corporate
entities, Non-Profit
Organizations, any local or
statutory bodies including
governments at country, state
or local levels
Nominal Temporary Income and Sales, Purchases,
Expenditure Accounts for Electricity Charges
recognition of the implications
of the financial transactions
during each fiscal year till
finalisation of accounts at the
end
4. ‘T’ format
Dr NAME OF ACCOUNT Cr
DEBIT CREDIT
Left side Right
side
9. a) John began business with cash in hand
$5000 on 1 January 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Jan 1
Cash in hand 5000
Capital-John 5000
John began business with cash $5000.
10. b) John began business with a bank loan of
$8000 on 1 January 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Jan 1
Cash in hand 8000
Loan from bank 8000
John began business with a bank loan
of $8000.
11. c) John used $2000 to buy a motor vehicle
for business use on 16 March 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Mar 16
Motor Vehicle 2000
Cash 2000
John bought a motor vehicle worth
$2000.
12. d) John repaid bank loan of $1500 using cash
on 27 Oct 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Oct 27
Loan from Bank 1500
Cash 1500
John repaid the bank loan.
13. e) John sold goods at $16000 on credit to
ABC Ltd on 26 November 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Nov 26
Debtors (ABC Ltd) 16000
Sales 16000
Sales worth $6000 to ABC Ltd.
14. f) John received money for goods from
ABC Ltd $10,000 on 11 Dec 2010.
General Journal
Date Particulars Debit Credit
2010 $ $
Dec 11
Cash 10,000
Debitors 10,000