The Simple Ledger Debit and Credit Rules. Pacific Trucking. Let’s go through the Transactions.
10
The Simple Ledger Debit and Credit Rules
-
Upload
taya-wardle -
Category
Documents
-
view
275 -
download
0
Transcript of The Simple Ledger Debit and Credit Rules. Pacific Trucking. Let’s go through the Transactions.
The Simple LedgerDebit and Credit Rules
Pacific Trucking.
• Let’s go through the Transactions
Pacific Trucking.
• 2. Company pays $200 to Dini Bros in partial payment of the amount owed to them.
• 3. The company receives $200 cash from R. Van Loon in partial payment of her debt.
• 4. A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Pacific Trucking.
• 5. A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
• 6. A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
• 7. One of the lifting machines (part of equipment) breaks down. The company spends $650 cash to have the machine repaired.
Pacific Trucking
• After all the transactions, these arethe cash and capital T-accounts forPacific Trucking.
Double-Entry System of Accounting
• If your accounts do not balance after a transaction, you have DEFINITELY made an error.
• If your accounts do balance, it is PROBABLY correct, but not necessarily.
Board Exercises
• Fiona Siska is the owner-operator of a fitness clinic. The ledger used in her business contains the following accounts:-Cash-Accounts Receivable (several)-Supplies-Furniture-Equipment-Automobile-Accounts Payable (several)-Flora Siska, Capital
Board Exercises
• 1. The business receives $300 cash from J. Parker, one of the accounts receivable.
• 2. The business purchases $200 worth of supplies for cash.
• 3. Little Bros., one of the Accounts Payable, is paid $100.
• 4. The owner withdraws $250 for her personal use.
• 5. A new piece of equipment costing $500 is purchased from Champion Sports. The business pays $125 cash at the time of purchase, with the balance of $375 to be paid within 30 days.
• 6. A new customer signs up for a fitness course. The $300 fee is paid in cash.
Homework Exercises
• Page 103 #2, 3
![TRUCKING INDUSTRY · [ 6 ] TRUCKING INDUSTRY ENVIRONMENTAL BEST PRACTICE GUIDE ThE AUSTRALIAN TRUCKING ASSOCIATION The Australian Trucking Association (ATA) is the national peak body](https://static.fdocuments.us/doc/165x107/5e6e335355a7c4346213f0b4/trucking-6-trucking-industry-environmental-best-practice-guide-the-australian.jpg)
