Chapter 2 - Rules Of Debit And Credit And General Ledger

Lesson
General Ledger (T-account) & Record Cash Transaction
03

Debit and Credit Rule 借项与贷项的规则

在 T-account 里面，他的归类和呈现方式是这样的：
Debit Credit
Assets Liabilities
【当我的资产增加了， 【当我的负债增加了，
就会记录在这里】 就会记录在这里】

Equities
【公司的角度欠我钱，所以它是公司的债】

Debit Credit
Expenses Income
【当我的开销增加了， 【当我的收入增加了，
就会记录在这里】 就会记录在这里】

如果把以上的东西结合起来，可以变成「AELI」的口诀：

Assets Liabilities
Expenses Income

口诀与做法：
步骤 1：先找出它涉及哪两个 Account 的名字？
步骤 2：他们是什么类别？知道到底哪个要 Debit，哪个要 Credit？
步骤 3：记录起来，一左一右

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Chapter 2 - Rules Of Debit And Credit And General Ledger

Example 1 – Debit and Credit Rule

You are required to complete the table below, showing the accounts to be debited and credited
and the reasons:

Transaction Accounts to be Reason Accounts to Reason

debited be credited
(a) Goods were sold for
cash.
(b) Telephone fee was paid
for cash.
(c) Goods were purchased
for cash.
(d) A computer for
business use was paid
by cheque.
(e) Cash was drawn from
the bank.
(f) Goods sold to Chia on
credit.
(g) Received cheque from
Chia in full settlement.
(h) Goods purchased from
Ng on credit.
(i) Sent cheque to Ng to
settle the amount
owed.

Debit Credit
Assets Liabilities
Expenses Income

口诀与做法：
步骤 1：先找出它涉及哪两个 Account 的名字？
步骤 2：他们是什么类别？知道到底哪个要 Debit，哪个要 Credit？
步骤 3：记录起来，一左一右

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Example 2 – Cash Transactions

The following transactions are related to Amanda's business for the month of September 2021:

2021
Sep 1 Start up a business with cash RM 2,000 as capital.
3 Purchased goods for cash RM 800.
5 Sold goods for cash RM 1,000.
6 Paid transport expenses for cash RM 100.
17 Received cash RM 200 from sales.
19 Paid salaries for cash RM 800.
23 Bought furniture for cash RM 120.

You are required to record the above transactions by using double entry in General Ledger.

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

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Chapter 2 - Rules Of Debit And Credit And General Ledger

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

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Chapter 2 - Rules Of Debit And Credit And General Ledger

Lesson
Record Credit Transaction
04

Account Receivable and Account Payable 应收账款与应付账款

Account Receivable 应收账款 / Trade Receivable 销货应收账

• A person / a business who owes money 欠钱 to a business for goods supplied to him 提
供货给他们。
• Account Receivable: ______________资产

Account Payable 应付账款 / Trade Payable 购货应付账款

• A person / a business who whom money is owed 被欠钱 for goods supplied by him 他们
提供货给我们。
• Account Payable: ______________负债

Sales Return and Purchase Return 销货退回与购货退回

Sales Return / Return Inwards 销货退回

• Trade Receivable / trade debtors return goods to us 债务人退货给我们

Purchases Return / Return Outwards 购货退回

• We return goods to trade payables / trade creditors 我们退货给债权人

Example 3 – Credit Transactions & Returns

ABC Trading is carrying a business and the transaction shown as follows:

2021
Mar 1 – Purchased goods from Vin RM 120.
Mar 2 – Sold goods to Ken on credit RM 200.
Mar 5 – Bought goods from Vin RM 180.
Mar 6 – Sold more goods to Ken on credit RM 350.
Mar 7 – Returned wrong goods to Vin RM 50.
Mar 9 – Received unsuitable goods from Ken RM 100.
Mar 11 – Cash sales to Mindy RM 500 and bank-in money directly.
Mar 15 – Purchases done by cheque RM 150.
Mar 30 – Received cheque from Ken RM 200.
Mar 30 – Settle the full amount to Vin by cheque.
Prepare ABC Trading’s General Ledger and close the balance of all accounts.

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ABC Trading

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

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Chapter 2 - Rules Of Debit And Credit And General Ledger

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

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Lesson
Capital and Drawings
05

Capital / Equity / Owner’s Equity Account 资本户口/业主权益

• Debt that a business owes to its owner. 公司欠你（老板）的钱

• Resources (cash & non-cash) invested by owner. 你（老板）投资的资源（钱+资产）

Drawings Account 提取户口

• Personal withdrawal 私人提取 by its owner.

• Debit in drawings account (company pay for owner’s personal item).
• Will reduce amount of equity / capital.

Example 4 – Capital & Drawings Account

Ah Ren started his business on 1 August 2021. The transaction during the month Aug 2021:
Aug 1 Ah Ren commenced business with capital in cash RM 6,000.
3 Bought table and chair RM 300 for cash for office used.
6 Goods purchased by cash RM 800.
10 Brought in additional cash RM 4,000 for business used.
12 Brought in sofa from Ah Ren’s home RM 400 for office used.
18 Drew out RM 1,000 cash for private used.
25 Took out RM 200 goods as gifts for Ah Ren’s wife.
Prepare Ah Ren’s General Ledger and close the balance of all accounts.

Ah Ren

Date Particulars RM Date Particulars RM

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Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

Date Particulars RM Date Particulars RM

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Lesson
Trial Balance
06

• Prepared periodically 周期性 to check the accuracy 正确性 and completeness 完整性 of
the double entry of all the accounts in the General Ledger
检查自己做的 T-account (double entry) 是否做得正确+完整
• It is a list of accounts 所有户口的列表 and the balances 结存 (either debit or credit) are
extracted from the General Ledger/T-account at any given date
把所有 T-account 里面的 balance 数字抄进来
• If the total of debit balances equals the total of credit balances, the accounts are proved
to be the mathematical equality of debits and credits in the General Ledger.
若到最后把所有数字加起来，得到 Debit = Credit，在数学方程式的证明下代表正确的
• Only take 「Balance b/d」 amount
只拿「Balance b/d」的数字

Example 5 – Balance Off the Accounts & Prepare Trial Balance

Refer to Example 2 – Amanda, you are required to:

• Balance off all the T-accounts; and

• Prepare Trial Balance as at 30 September 2021.

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Example 6 – Balance Off the Accounts & Prepare Trial Balance

Refer to Example 3 – ABC Trading, you are required to:

• Balance off all the T-accounts; and

• Prepare Trial Balance as at 31 March 2021.

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