Double-Entry System 会计财务讲义

Double-EntrySystemCHAPTER5Double-EntrySystemThedouble-entrysystemis

consideredastheheartofmodernaccounting.Allaccountingsystemsoperateonthebasisofthedouble-entrysystem.Manualaccountingsystem

Computerizedaccountingsystem

Double-EntrySystemThedouble-entrysystemprovideschecksandbalancestoensurethatyourbooksarealwaysinbalance.Indouble-entryaccounting,eachtransactionhastwojournalentries:adebit

andacredit.Double-EntrySystemCreditsDebits＝Becausedebitsequalcredits,double-entryaccountingpreventssomecommonbookkeepingerrors.Thesumofalldebitsshouldalwaysequalthesumofallcredits.

TAccount

TheTaccountisthebasicformofthedouble-entrysystem.

TitleofAccountLeftorDebitSide

RightorCreditSide

Therulesofthedouble-entrysystemarethatonetransactionaffectsatleasttwoaccounts---debitaccountsandcreditaccounts.Double-EntrySystem

Assets=Liabilities+Owner’sEquityAccountingequation

AccountTypeDebitCreditAssetsIncreaseDecreaseLiabilitiesDecreaseIncreaseOwner’sequityDecreaseIncreaseIncomeDecreaseIncreaseExpensesIncreaseDecreaseTransactionAnalysisNow,let’s

analyzethetransactionofGeorgeRossPhotocopyCompany

…TransactionAnalysisTransaction1

March3:Mr.GeorgestartshisphotocopycompanyonMarch1with20,000usdollarsthatwasimmediatelydepositedintothebank.

AssetsOwner’sequity

?IncreaseordecreaseDebitedorCreditedTransactionAnalysisTransaction1

AccountTypeDebitCreditCashatBankIncreaseGeorgeRoss,CapitalIncreaseCashatBank$10,000GeorgeRoss,Capital$10,000TransactionAnalysisTransaction2

March6:Rentedanotheroffice,payingayear’srentinadvance,$4,800bycheck.Assets1?IncreaseordecreaseDebitedorCreditedAssets2TransactionAnalysisTransaction2

AccountTypeDebitCreditPrepaidRentIncreaseCashatBankDecreasePrepaidRent$4,800CashatBank$4,800TransactionAnalysisTransaction3

March7:Purchasedphotocopyequipmentfor$2,000withcash.

Assets1Assets2?IncreaseordecreaseDebitedorCreditedTransactionAnalysisTransaction3

AccountTypeDebitCreditPhotocopyEquipmentIncreaseCashDecreasePhotocopyEquipment$2,000Cash$2,000TransactionAnalysisTransaction4

March7:PurchasedofficeequipmentfromHougasEquipmentCo.for$5,300,paying$2,300incashandagreeingtopaytherestnextmonth.Assets1Assets2?IncreaseordecreaseDebitedorCreditedLiabilityTransaction4

TransactionAnalysisAccountTypeDebitCreditOfficeEquipmentIncreaseCashDecreaseAccountsPayableIncreaseOfficeEquipment$5,300Cash$2,300AccountsPayable3,000TransactionAnalysisTransaction5

March8:Purchasedoncreditphotocopysuppliesfor$2,300anofficesuppliesfor$800fromTimSupplyCo.AssetsLiability?IncreaseordecreaseDebitedorCreditedTransactionAnalysisTransaction5

AccountTypeDebitCreditPhotocopySuppliesIncreaseOfficeSuppliesIncreaseAccountsPayable

IncreasePhotocopySupplies$2,300OfficeSupplies800AccountsPayable$3,100TransactionAnalysisTransaction6

March8:Paid$600incashforaone-yearinsurancepolicywithcoverageeffectiveMarch1.Assets1Assets2?IncreaseordecreaseDebitedorCreditedTransaction6

TransactionAnalysisAccountTypeDebitCreditPrepaidInsuranceIncreaseCashDecreasePrepaidInsurance$600Cash

$600TransactionAnalysisTransaction7

March9:PaidTimSupplyCo.$3,100oftheamountowedbycheck.Assets?IncreaseordecreaseDebitedorCreditedLiabilityTransaction7

TransactionAnalysisAccountTypeDebitCreditAccountsPayableDecreaseCashatBankDecreaseAccountsPayable$3,100CashatBank$3,100TransactionAnalysisTransaction8

March10:Performedaservicebyprintingthrowawaysforagarmentdealerandagreedtocollectthefeeatthebeginningofthenextmonth,$6,000.Assets?IncreaseordecreaseDebitedorCreditedOwner’sequityTransaction8

TransactionAnalysisAccountTypeDebitCreditAccountsReceivableIncreasePhotocopyFeesEarnedIncreaseAccountsReceivable$6,000PhotocopyFeesEarned$6,000TransactionAnalysisTransaction9

March14:Accept$1,300asanadvancefeeforcopyingworkstobedoneforanadvertisingagency.AssetsLiability?IncreaseordecreaseDebitedorCreditedTransaction9

TransactionAnalysisAccountTypeDebitCreditCashIncreaseUnearnedPhotocopyFeesIncreaseCash$1,300UnearnedPhotocopyFees$1,300TransactionAnalysisTransaction10

March19:PerformedaservicebyprintingpricelistsforWardFashionCompanyandcollectacheckof$3,400.Assets?IncreaseordecreaseDebitedorCreditedOwner’sequityTransaction10

TransactionAnalysisAccountTypeDebitCreditCashIncreasePhotocopyFeesEarnedIncreaseCashatBank$3,400PhotocopyfeesEarned

$3,400Transaction11

TransactionAnalysisAccountTypeDebitCreditGeorgeRoss,WithdrawalsDecreaseCashDecreaseGeorgeRoss,Withdrawals$980Cash

$980March24:GeorgeRosswithdrew$980fromthebusinessforpersonallivingexpenses.TransactionAnalysisTransaction12

March25:Paidthesecretarysalary,$1,100.AccountTypeDebitCreditOfficeSalaryExpenseDecreaseCashDecreaseOfficeSalaryExpense$1,100Cash$1,100Transaction13

TransactionAnalysisAccountTypeDebitCreditUtilityExpenseDecreaseCashDecreaseUtilityExpense$230Cash

$230March29:Receivedandnotpaidtheutilitybillof$700.

Transaction14

TransactionAnalysisAccountTypeDebitCreditTelephoneExpenseDecreaseAccountsPayableIncreaseTelephoneExpense$120AccountsPayable$120March31:Receivedatelephonebill,$120.TaccountCash(atBank)

Bal.$410

3.$10,00014.1,30019.3,400

6.$4,8007.2,0002,3006003,10024.9801,10029.230TaccountAccountsReceivable

10.$6,000

Bal.$6,000

PhotocopySupplies

8.$2,300

Bal.$2,300

OfficeSupplies8.$800

Bal.$800PrepaidInsurance8.$600Bal.$600TaccountPrepaidRent6.$4,800B