課件案例講稿intro to t accounts

1、Double entry and T Accounts1Background presentationsIntroduction to double entryDuality quadrantWhat is an account?2The double entry systemThe double entry system of accounting is characterised by the following features:Each transaction requires two entries to be madeEach transaction consists ofOne

2、debit entry (Dr)One credit entry (Cr)3The accounts for double entryEach account should be shown on a separate page in the accounting books.This is the layout of a page of an accounts book:4This presentation is sometimes called a T account because of the shape!It probably reminds you too of the duali

3、ty quadrant:5We can modify the duality quadrant to form a T account:DEBITSCREDITSEquityLiabilitiesRevenues e statementBALANCE SHEETAssetsExpensesNow lets put the last example into T account format:6Dual Aspect: Here are some transactions:1.An owner pays 10,000 from his bank account into the business

4、 bank account2.The business owes Jones 3,000 and it sends him a cheque for 2,0003.Smith owes the business 4,000 and the business receives a cheque for 1,000 from him4.The business pays 5,000 in cash for a car7 Motor cars ownedOwed by SmithOwed to JonesOwed to the ownerCash andBank balances10,00010,0

5、002,0002,0001,0005,0005,0001,0001.An owner pays 10,000 from his bank account into the business bank account2.The business owes Jones 3,000 and it sends him a cheque for 2,0003.Smith owes the business 4,000 and the business receives a cheque for 1,000 from him4.The business pays 5,000 in cash for a carB/F 3,000B/F 4,000 8Motor cars ownedCash andBank balances10,0002,0001,0005,0005,000Flow of valueThe text book explains debits and credits in terms of flow of value:9COMING UP LATER:In another presentation we will look athow to calculate and present the account balan