f 05/20/15 ~ EDU-MADE-EASY BLOG

Education is an ornament in prosperity and a refuge in adversity.

It is as impossible to withhold education from the receptive mind as it is impossible to force it upon the unreasoning. - Agnes Repplierg

Education aims to give you a boost up the ladder of knowledge.

Educating the mind without educating the heart is no education at all. - Aristotle

He who opens a school door, closes a prison.

If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest. - Ben Franklin

To the uneducated, an A is just three sticks.

To teach a man how he may learn to grow independently, and for himself, is perhaps the greatest service that one man can do another.

If you think education is expensive, try ignorance.

Education is what remains after one has forgotten what one has learned in school.

FINANCIAL ACC 101


LEDGER

Hey Guys, Happy New Week. This month is soon over, well 2015 has been a FAST year wouldn't you say? Well All to the Glory of God. How was your weekend, mine was splendid. Alright, straight to Business...
It is a book that contains a permanent record of all transactions of a business in a classified and summarised form. The Ledger Book is the Final Destination of all Transactions on the subsidiary books. All the transactions must be recorded using the principle of double entries.  The entries in the cash book and other original books of account are posted to the ledger.

Classification of Ledger:
1. Personal Ledger- These comprises of the supplier's personal account and customer's personal account. it can be divided into the following:
a. Sales Ledger- This is a record of the sales of books made by the organisation to various individuals and enterprises.
b. Purchases Ledger- It is a book for suppliers personal account. it contains account of creditors.
2. General Ledger- These are ledgers for real and nominal accounts. Example Expenses A/c, Income A/c, Sales A/c, etc as well as all other assets.

Nature of Ledger:
1. It is divided into two parts by a central line.
2. The right side is the credit side which is entitled CR.
3. The left side is the debit side which is entitled DR.
4. The Ledger has columns for Date, Particulars, Folio, Amount on the debit and credit sides.
5. The right side is the side that gives value.
6. The left side is the side that receives value.

Double Entry Principle
The Double Entry System of the Book Keeping will be used for recording Transaction in the Ledger. The Summary; Debit the Receiver & Credit the Giver.

Procedures:
* Every Transaction must affect 2 accounts.
* Give names to the 2 accounts by using the name of other account in the account you are posting.
* Credit all the giving account.
* Debit all the receiving account.

ILLUSTRATION 1:
Complete the Transactions by showing account to the credit and account to the debit.
1. Started Business with Money in Cash.
ANSWER: Cash a/c- Debit
Capital a/c- Credit

2. Paid Part of the Opening cash into the Bank.
ANSWER: Bank a/c- Debit
Cash a/c- Credit

3. Bought Goods on Credit from Ayo.
ANSWER: Ayo a/c- Credit
Purchases a/c- Debit

4. Sold Goods on Credit to Olotu.
ANSWER: Olotu's a/c- Debit
Sales a/c- Credit

5. Cash Purchases.
ANSWER: Cash a/c- Credit
Purchases a/c- Debit

6. Olotu returned goods to us.
ANSWER: Olotu's a/c- Credit
Returns Inward's a/c- Debit

7. We returned goods to Ayo.
ANSWER: Ayo's a/c- Debit
Returns Outward's a/c- Credit

8. Dapo lent us cash.
ANSWER: Dapo's a/c- Credit
Cash a/c- Debit

9. Received Commission in cash.
ANSWER: Cash a/c- Debit
Commission a/c- Credit

10. Sold goods for cash N6, 000.
ANSWER: Sales a/c- Credit
Cash a/c- Debit

11. Purchased Goods on credit from Mallam Abiodun N15, 000.
ANSWER: Abiodun's a/c- Credit
Purchases a/c- Debit

12. Purchased Stationery N3, 500 Cash.
ANSWER: Stationery a/c- Debit
Cash a/c- Credit
13. Purchased Furniture by cash N2, 400.
ANSWER: Furniture a/c- Debit
Cash a/c- Credit

14. Paid Mallam Abiodun N3, 500 Cash, being part of settlement of goods purchased.
ANSWER: Mallam Abiodun's a/c- Debit
Purchases a/c- Credit

15. Paid rent in cash N300.
ANSWER: Rent a/c- Debit
Cash a/c- Credit

16. Paid salaries and wages N600 Cash.
ANSWER: Payment a/c- Debit
Cash a/c- Credit

17. Paid Advertisement expenses N200 Cash.
ANSWER: Advertisement a/c- Debit
Cash a/c-Credit

18. Sold goods to Charles on credit N2, 400
ANSWER: Sales a/c- Credit
Charles a/c- Debit

This brings us to the end of Today's Session. Hope this was very helpful to you, leave a comment of what you think of this Tutorial and of your Questions below. Have a Blessed Day and Remember You are Amazing. God Bless You.