Double Entry Double Entry System 3 System 3 DR CR
Objectives Objectives At the end of the lesson, students should be able to : • know what are Purchases, Sales, Returns Inwards and Returns Outwards. • know what are Expense and Revenue items. • know how to record them into Journals and post to the Ledger Accounts.
Expenses and Revenues Expenses and Revenues
Purchases: Purchase of goods for resale purpose. (Cost price) expense for the firm Sales: Sale of goods to customers. (Selling price) revenue for firm
Expenses: Money that the firm spent in the process of operating the business to earn revenue. Rent Insurance Wages Advertising Transport Examples: Revenues: Items that generate profits and income for the firm. Rent Revenue Interest Revenue Commission Examples:
EXPENSES DEBIT CREDIT CREDIT REVENUES DEBIT
SO HOW DO YOU SO HOW DO YOU RECORD EXPENSES RECORD EXPENSES AND REVENUES? AND REVENUES?
Debit Credit Date Particulars $ $ Double Entry a) John purchas ed goods at $6000 on credit a)
- Spring '12
- Double-entry bookkeeping system, PCK Ltd