PRIME DOUBLE ENTRIES CHAPTER 4,5,6 • CASH SALE DR CASH CR SALE -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES) -> (SPL/SALES OR REVENUE ACCOUNT/ INCREASES) • CREDIT SALE DR RECEIVABLE -> ( SOFP/CURRENT ASSETS/RECEIVABLE ACCOUNT/INCREASES) CR SALE -> (SPL/SALES OR REVENUE ACCOUNT/ INCREASES/SALES DAY BOOK) • CASH PUCHASE DR PURCHASE -> (SPL/PURCHASE ACCOUNT/ INCREASES) CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES) • CREDIT PUCHASE DR PURCHASE -> (SPL/PURCHASE ACCOUNT/ INCREASES) CR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/INCREASES/PURCH. DAY BOOK) CHAPTER 4,5,6 • CASH SALE RETURNS DR SALES RETURNS -> (SPL/SALES OR REVENUE ACCOUNT/DECREASES AT THE END OF THE PERIOD) CR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK) • CREDIT SALE RETURNS DR SALES RETURNS -> (SPL/SALES OR REVENUE ACCOUNT/DECREASES AT THE END OF THE PERIOD. SALES RETURN DAY BOOK) CR RECEIVABLE -> (SOFP / CURRENT ASSETS/RECEIVABLE ACCOUNT/DECREASES) • CASH PUCHASE RETURNS DR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES/CASH BOOK) CR PURCHASE RETURNS -> (SPL/PURCHASE ACCOUNT/DECREASES AT THE END OF THE PERIOD) • CREDIT PUCHASE RETURNS DR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/ DECREASES) CR PURCHASE RETURNS -> (SPL/PURCHASE ACCOUNT/DECREASES AT THE END OF THE PERIOD/PURCHASE RETURN DAY BOOK) CHAPTER 4,5,6 • PAYMENTS TO SUPPLIER FOR PAYABLE DR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/DECREASES) CR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK) • PAYMENTS FROM OUTSTANDING CUSTOMER DR CASH -> (SOFP/CURRENT ASSETS/CASH/INCREASES/CASH BOOK ) CR RECEIVABLE -> (SOFP / CURRENT ASSETS/RECEIVABLE ACCOUNT/DECREASES) • PAYMENTS FOR EXPENSE. DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES) CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK) • BUSINESS DECIDES ON THE AMOUNT OF CASH TO BE HELD AS A FLOAT DR PETTY CASH -> (SOFP/CA/CASH/INCREASES/PETTY CASH BOOK) CR BANK ACCOUNT -> ( SOFP/CA/BANK/DECREASES/CASH BOOK) • BUSINESS DECIDES TO TRANSFER EXCESS AMOUNT TO THE BANK ACCOUNT DR BANK ACCOUNT -> (SOFP/CA/BANK/INCREASES/CASH BOOK) CR PETTY CASH -> ( SOFP/CA/CASH/DECREASES/PETTY CASH BOOK) CHAPTER 4,5,6 • WHEN PROPRIETOR INJECTS CASH INTO THE BUSINESS. DR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES/CASH BOOK) CR DRAWINGS -> (EQUITY/CAPITAL/INCREASES AT THE END OF THE YEAR/JOURNAL) • WHEN PROPRIETOR INJECTS NCA INTO THE BUSINESS. DR NCA CR DRAWINGS -> (SOFP/NON-CURRENT ASSETS/INCREASES/JOURNAL) -> (EQUITY/CAPITAL/INCREASES AT THE END OF THE YEAR/JOURNAL) • WHEN PROPRIETOR TAKES CASH FROM THE BUSINESS FOR PERSONAL USE. DR DRAWINGS -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR/JOURNAL) CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK) • WHEN PROPRIETOR TAKES INVENTORY FROM THE BUSINESS FOR PERSONAL USE. DR DRAWINGS -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR/JOURNAL) CR PURCHASE -> ( SPL/PURCHASE/CASH ACCOUNT/DECREASES) • WHEN PROPRIETOR TAKES NCA FROM THE BUSINESS FOR PERSONAL USE. DR DRAWINGS CR NCA -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR) -> (SOFP/NON-CURRENT ASSETS/DECREASES) CHAPTER 7 • OPENING INVENTORY DR PROFIT OR LOSS A/C -> (TO SPL/ COGS/PURCHASES/ INCREASES) CR INVENTORY ACCOUNT -> (FROM SOFP / CURRENT ASSETS / INVENTORY ACCOUNT DECREASES) • CLOSING INVENTORY DR INVENTORY ACCOUNT -> (TO SOFP/ CURRENT ASSETS / INVENTORY ACCOUNT / INCREASES) CR PROFIT OR LOSS ACCOUNT -> (FROM SPL/ COGS/ PURCHASES / DECREASES) • CARRIAGE INWARDS (CREDIT TRANSACTION) DR PURCHASE CR PAYABLE -> (SPL/ COGS/PURCHASES / INCREASES) -> (SOFP/ CURRENT LIABILITIES/ PAYABLE/ INCREASES) • CARRIAGE INWARDS (CASH TRANSACTION) DR PURCHASE -> (SPL/ COGS/PURCHASES / INCREASES) CR CASH -> (SOFP/ CURRENT ASSETS/ CASH/ DECREASES) CHAPTER 7 • CARRIAGE OUTWARDS (CREDIT TRANSACTION) DR DELIVERY EXPENSE -> (SPL / EXPENSES / INCREASES) CR PAYABLE -> (SOFP/ CURRENT LIABILITIES/ PAYABLE/ INCREASES) • CARRIAGE OUTWARDS (CASH TRANSACTION) DR DELIVERY EXPENSE -> (SPL / EXPENSES / INCREASES) CR CASH -> (SOFP/ CURRENT ASSETS/ CASH/ DECREASES) • DOUBLE ENTRY FOR GOODS STOLEN OR DESTROYED DR EXPENSE OR INSURANCE -> (SPL OR SOFP/OTHER EXPENSES OR CA/ EXPENSE OR INSURANCE CLAIM ACCOUNT/INCREASES) CR COGS -> (SPL/COST OF SALE / DECREASES) CHAPTER 8 • DEPRECIATION CHARGE FOR THE YEAR DR DEPRECIATION CHARGE -> (SPL/DEPRECIATION EXPENSE OR COGS/INCREASES) CR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/INCREASES) • REVALUATION UPWARDS OF NCA WITH ACCUMULATED DEPRECIATION DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES) DR COST OF NCA -> (SOFP/NCA /NCA COST/INCREASES) CR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /INCREASES) • REVALUATION DOWNWARDS OF NCA WITH ACCUMULATED DEPRECIATION DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES) DR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /DECREASES) CR COST OF NCA -> (SOFP/NCA /NCA COST/DECREASES) • TRANSFER OF EXCESS DEPRECIATION DR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /DECREASES) CR RETAINED EARNINGS -> (EQUITY /RETAINED EARNINGS /INCREASES) CHAPTER 8 • DISPOSAL OF NCA FOR CASH (IF PROCEEDS EXCEED CARRYING VALUE) DR CASH->(SOFP/CA/CASH/INCREASES) DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES) CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES) CR PROFIT ON DISPOSAL -> (SPL/OTHER INCOME/INCREASES) WITH THE EXCEED AMOUNT • DISPOSAL OF NCA FOR CASH (IF CARRYING VALUE EXCEED PROCEEDS) DR LOSS ON DISPOSAL -> (SPL/OTHER EXPENSES/INCREASES) WITH THE EXCEED AMOUNT DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES) CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES) • DISPOSAL OF NCA (IF THERE IS NO PROCEEDS, NOT FULLY DEPRECIATED) DR LOSS ON DISPOSAL -> (SPL/OTHER EXPENSES/INCREASES) WITH THE FULL CARRYING VALUE DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES) CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES) CHAPTER 10 • ACCRUAL DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES) CR ACCRUAL -> (SOFP/CL/ACCRUAL/INCREASES) • ACCRUED INCOME DR ACCRUED INCOME -> (SOFP/CA/RECEIVABLE/INCREASES) CR INCOME -> (SPL/OTHER INCOME/INCREASES) • PREPAYMENT DR PREPAYMENT -> (SOFP/CA/PREPAYMENT/INCREASES) CR EXPENSE -> (SPL/OTHER EXPENSES/DECREASES) • ADVANCE DR CASH -> (SOFP/CA/CASH/INCREASES) CR ADVANCE -> (SOFP/CL/ADVANCE/INCREASES) CHAPTER 11 • SETTING UP OR INCREASE IN PROVISION DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES) CR PROVISION -> (SOFP/CL/PROVISION/INCREASES) • DECREASE IN PROVISION DR PROVISION-> (SOFP/CL/PROVISION/DECREASES) CR EXPENSE -> (SPL/OTHER EXPENSES/DECREASES) CHAPTER 12 • DIRECTLY WRITING OFF IRRECOVERABLE DEBTS DR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/INCREASES) CR RECEIVABLES -> (SOFP/CA/RECEIVABLES/DECREASES) • SETTING UP ALLOWANCE FOR RECEIVABLES OR INCREASE IN ALLOWANCE FOR RECEIVABLES DR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/INCREASES) CR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/INCREASES) • WRITING OF IRRECOVERABLE DEBTS WHICH PREVIOUSLY SET UP ALLOWANCE FOR DR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/DECREASES) CR RECEIVABLES -> (SOFP/CA/RECEIVABLES/DECREASES) • DECREASE IN ALLOWANCE FOR RECEIVABLES DR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/DECREASES) CR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/DECREASES) • PAYMENT BY OUTSTANDING CUSTOMER DR CASH -> (SOFP/CA/CASH/INCREASES) CR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/DECREASES) CHAPTER 13 • SALE OF GOODS $100 WITH 20% SALES TAX FOR REGISTERED TRADER DR CASH OR RECEIVABLE $120 -> (SOFP/CA/CASH OR RECEIVABLE/INCREASES) CR SALE $100 -> (SPL/SALE OR REVENUE /DECREASES) CR SALES TAX PAYABLE $20 -> (SALES TAX CONTROL ACCOUNT/SOFP) • PURCHASE OF GOODS $100 WITH 20% SALES TAX FOR REGISTERED TRADER DR PURCHASE $100 -> (SPL/PURCHASE/INCREASES) DR SALES TAX $20 -> (SALES TAX CONTROL ACCOUNT/SOFP) CR CASH OR PAYABLE $120 -> (SOFP/CA OR CL/CASH OR PAYABLE/DECREASES OR INCREASES) • PURCHASE OF GOODS $100 WITH 20% SALES TAX FOR UNREGISTERED TRADER DR PURCHASE $120 -> (SPL/PURCHASE/INCREASES) CR CASH OR PAYABLE $120 -> (SOFP/CA OR CL/CASH OR PAYABLE/DECREASES OR INCREASES) CHAPTER 14, 15 • DOUBLE ENTRY FOR DISCOUNT RECEIVED $20 FOR THE GOODS WITH PURCHASE PRICE $100 DR PAYABLE $100 -> (SOFP/CL/PAYABLE/DECREASES) CR CASH $80 -> (SOFP/CA/CASH/DECREASES) CR DISCOUNTS RECEIVED $20 -> (SPL/OTHER INCOME/DISCOUNTS RECEIVED/INCREASES) • DOUBLE ENTRY FOR DISCOUNT ALLOWED $20 FOR THE GOODS WITH SALE PRICE $100 DR CASH $80 -> (SOFP/CA/CASH/INCREASES) DR DISCOUNTS ALLOWED $20 (SPL/OTHER EXPENSES/DISCOUNTS ALLOWED/INCREASES) CR RECEIVABLE $100 -> (SOFP/CA/RECEIVABLE/DECREASES) • DOUBLE ENTRY FOR SALE/ DISCOUNT ALLOWED $20 FOR THE GOODS WITH SALE PRICE $100 (IF CUSTOMER IS EXPECTED TO TAKE THE ADVANTAGE) DR RECEIVABLE $80 -> (SOFP/CA/RECEIVABLE) CR SALES $80 -> (SPL/SALE) • IF CUSTOMER DOES NOT TAKE THE ADVANTAGE, THEN SALE SHOULD BE INCREASED BY $20 DR RECEIVABLE $20 -> (SOFP/CA/RECEIVABLE/INCREASES) CR SALE $20 -> (SPL/SALE/INCREASES) CHAPTER 14, 15 • DOUBLE ENTRY FOR DISHONOURED BILLS OR CHEQUES BY CUSTOMERS DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES) CR CASH -> (SOFP/CA/CASH/DECREASES) • DOUBLE ENTRY FOR CASH PAID TO CUSTOMERS TO CLEAR (IN RESPECT OF) CREDIT BALANCES IN RECEIVABLE ACCOUNT DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES) CR CASH -> (SOFP/CA/CASH/DECREASES) • DOUBLE ENTRY FOR INTEREST CHARGED ON LATE PAID ACCOUNTS DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES) CR INTEREST CHARGE INCOME -> (SPL/OTHER INCOME/INTEREST CHARGE INCOME/INCREASES) • DOUBLE ENTRY FOR CASH RECEIVED FROM SUPPLIERS TO CLEAR (IN RESPECT OF) DEBIT BALANCES IN PAYABLE ACCOUNT DR CASH -> (SOFP/CA/CASH/INCREASES) CR PAYABLE -> (SOFP/CL/PAYABLE/INCREASES) • DOUBLE ENTRY FOR INTEREST PAID ON OVERDUE ACCOUNT DR INTEREST CHARGE EXPENSE -> (SPL/OTHER EXPENSES/INTEREST CHARGE/INCREASES) CR PAYABLE -> (SOFP/CL/PAYABLE/INCREASES) CHAPTER 14, 15 • DOUBLE ENTRY FOR CASH REFUNDS TO CREDIT CUSTOMERS DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES) CR CASH -> (SOFP/CA/CASH/DECREASES) • DOUBLE ENTRY FOR CASH REFUNDS FROM SUPPLIERS DR CASH -> (SOFP/CA/CASH/INCREASES) CR PAYABLE -> (SOFP/CL/PAYABLE/INCREASES) • DOUBLE ENTRY FOR CONTRA DR PAYABLE -> (SOFP/CL/PAYABLE/DECREASES) CR RECEIVABLE -> (SOFP/CA/RECEIVABLE/DECREASES) • DOUBLE ENTRY FOR DIRECT DEBIT OR BANK CHARGES DR INTEREST CHARGE -> (SPL/OTHER EXPENSES/INTEREST EXPENSE/DECREASES) CR CASH -> (SOFP/CA/CASH/DECREASES) • DOUBLE ENTRY FOR DIRECT CREDIT DR CASH -> (SOFP/CA/CASH/INCREASES) CR INTEREST INCOME -> (SPL/OTHER INCOME/INTEREST INCOME/INCREASES) • DOUBLE ENTRY FOR STANDING ORDER DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES) CR CASH -> (SOFP/CA/CASH/DECREASES) CHAPTER 19 • DOUBLE ENTRY FOR PROFIT AFTER TAX DR PAT -> (SPL / PAT/DECREASES) CR RETAINED EARNINGS -> (EQUITY/RETAINED EARNINGS/ INCREASES) • DOUBLE ENTRY FOR INCOME TAX CHARGE DR INCOME TAX EXPENSE -> (SPL /TAX CHARGE/INCREASES) CR TAX PAYABLE-> (SOFP/CL/TAX PAYABLE/ INCREASES) • DOUBLE ENTRY FOR INTEREST CHARGE DR INTEREST EXPENSE -> (SPL / INTEREST EXPENSE /INCREASES) CR INTEREST PAYABLE-> (SOFP/CL/INTEREST PAYABLE/ INCREASES) • DOUBLE ENTRY FOR REVALUATION SURPLUS DR REVALUATION SURPLUS -> (OCI / REVALUATION SURPLUS/DECREASES) CR REVALUATION SURPLUS -> (EQUITY/REVALUATION SURPLUS ACCOUNT/INCREASES) CHAPTER 19 • DOUBLE ENTRY FOR RIGHTS ISSUE DR CASH -> (SOFP / CA/CASH/INCREASES) CR SHARE CAPITAL -> (EQUITY/SHARE CAPITAL/ INCREASES) CR SHARE PREMIUM -> (EQUITY/SHARE PREMIUM/ INCREASES) • DOUBLE ENTRY FOR BONUS ISSUE DR SHARE PREMIUM -> (EQUITY / SHARE PREMIUM/DECREASES) DR RETAINED EARNINGS -> (EQUITY/RETAINED EARNINGS/ DECREASES) (IF SHARE PREMIUM AMOUNT IS NOT ENOUGH) CR SHARE CAPITAL -> (EQUITY/SHARE CAPITAL/ INCREASES) • DOUBLE ENTRY FOR DIVIDENDS DECLARATION DR DIVIDENDS-> (EQUITY/RETAINED EARNINGS/ DECREASES) CR DIVIDEND PAYABLE -> (SOFP/DIVIDEND PAYABLE/ INCREASES) • DOUBLE ENTRY FOR DIVIDENDS PAYMENT DR DIVIDEND PAYABLE -> (SOFP/CA/DIVIDEND PAYABLE/ DECREASES) CR CASH -> (SOFP/CA/CASH/ INCREASES) • DOUBLE ENTRY FOR DIVIDENDS RECEIVED DR DIVIDENDS RECEIVABLE OR CASH -> (SOFP/CA/DIVIDENDS RECEIVABLE OR CASH / INCREASES) CR INTEREST OR DIVIDENDS RECEIVED -> (SPL/OTHER INCOME/INCREASES)