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  • Note di Apprendimento
  • Revisione degli argomenti
    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Accounts, which may be classified as assets, liabilities or proprietorship, are balanced off and will appear in the balance sheet.

    Hermina S.
    LC
    Hermina S.

    What is there a single entry balance for motor vehicles? (purpose/reason)

    Morne V.
    ZA
    Morne V.

    What is there a single entry balance for motor vehicles? (purpose/reason

    Sunday O.
    NG
    Sunday O.

    Closing and posting entries arriving at a point

    Odongo M.
    UG
    Odongo M.

    Accounting -> Closing and posting entries Closing and posting entries This involves closing revenue and expense items to the Profit and Loss summary account. It is very important to appreciate that this is a summary account. For that reason only the total of expenses and of revenue are taken from the general journal entries for inclusion in the ledger account. Skill in posting from individual ledger accounts to the general journal, and on the Profit and Loss summary account will be assessed in examination. Accounts that are either revenue or expense are closed off at the end of the accounting or reporting period. These items belong in the Profit and Loss statement. Accounts, which may be classified as assets, liabilities or proprietorship, are balanced off and will appear in the balance sheet. For example, a business may display the following ledger accounts: Capital 1 Mar. Balance 20 000 Bank 1 Mar. Balance 4 500 31 Mar. Cash payments 6 500 31 Mar. Cash receipts 10 000 Balance 8 000 14 500 14 500 Motor vehicles 1 Mar. Balance 23 500 Debtors 1 Mar. Balance 8 000 31 Mar. Bank 7 000 31 Mar. Credit sales 9 000 Balance 10 000 17 000 17 000 Creditors 31 Mar. Bank 4 600 1 Mar. Balance 5 000 Balance 6 400 31 Mar. Stock control 6 000 11 000 11 000 To this point only a sample of assets, liability and owners equity accounts have been shown. You will notice that no balance has been shown in the motor vehicles account as a single entry in itself represents a balance and the account may be left alone. The full treatment of the capital account will be shown later. Credit sales 31 Mar. Profit and Loss summary a/c 9 000 31 Mar. Rent revenue 9 000 Cost of goods sold 31 Mar. Stock control 4 800 31 Mar. Profit and Loss summary a/c 4 800 Advertising 31 Mar. Bank 500 31 Mar. Profit and Loss summary a/c 500 Wages 31 Mar. Bank 1 000 31 Mar. Profit and Loss summary a/c 1 000 Rates 31 Mar. Bank 400 31 Mar. Profit and Loss summary a/c 400

    Manish K.
    NP
    Manish K.

    Course is fruitful.

    Tamunotonye Stanley W.
    NG
    Tamunotonye Stanley W.

    noted !

    Penelope M.
    US
    Penelope M.

    must remember capital

    Adil N.
    MA
    Adil N.

    How is the ledger for capital account created?

    Gloria N.
    AE
    Gloria N.

    It is very important to appreciate that this is a summary account. For that reason only the total of expenses and of revenue are taken from the general journal entries for inclusion in the ledger account.

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