Chapter 6 Book-keeping Balancing Off Accounts
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Book-keeping Balancing off accounts
Chapter 6
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007
6-1
Learning Objective 1, 2 and 3 Understand what is meant by ‘balancing off’ accounts Balance off accounts at the end of a period and bring down the opening Distinguish between a debit and a credit balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-2
Learning balancing off accounts: a debtor account
Debit 2005 Aug 1 Sales Debit total: 482
Credit total: 158
Stage 1: Add up both sides to find out their totals. Do not write anything in the account at this stage
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-3
Learning balancing off accounts: a debtor account Debit 2005 Aug 1 Sales Aug 15 Sales Aug 30 Sales
D. Knight account £ 2005 158 Aug 28 Bank 206 118
Debit total: 482
Credit £ 158
Credit total: 158
482 - 158 = 324 Stage 2: Deduct the smaller total from the larger total to find the balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-4
Learning balancing off accounts: a debtor account with a credit balance
Debit 2005 Aug 1 Sales Aug 15 Sales Aug 30 Sales Sept 1 Balance b/d
Stage 5: enter balance to start off entries for following month b/d = brought down
D. Knight account £ 2005 158 Aug 28 Bank 206 Aug 31 Balance c/d 118 482
Credit £ 158 324 482
324
Stage 4: enter totals level with each other
Stage 3: enter balance here so that totals will be equal
c/d = carried down
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-5
Learning balancing off accounts: a creditor account Debit 2005 Aug 21 Bank
E. Williams account £ 2005 100 Aug 2 Purchases Aug 18 Purchases
Debit total: 100
Credit £ 248 116
Credit total: 364
Stage 1: Add up both sides to find out their totals. Do not write anything in the account at this stage
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-6
Learning balancing off accounts: a creditor account Debit 2005 Aug 21 Bank
E. Williams account £ 2005 100 Aug 2 Purchases Aug 18 Purchases
Debit total: 100
Credit £ 248 116
Credit total: 364
364 - 100 = 264
Stage 2: Deduct the smaller total from the larger total to find the balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-7
Learning balancing off accounts: a creditor account with a debit balance
Debit 2005 Aug 21 Bank Aug 31 Balance c/d
E. Williams account £ 2005 100 Aug 2 Purchases 264 Aug 18 Purchases 364
Credit £ 248 116 364
Sept 1 Balance b/d
Stage 3: enter balance here so that totals will be equal c/d = carried down
Stage 4: enter totals level with each other
264
Stage 5: enter balance to start off entries for following month
b/d = brought down
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-8
Learning Objective 4
Prepare accounts in a three column format, as used in computerised accounts.
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-9
Learning: Balancing off accounts on computer
Three column lay-out debtor account:
Column 1: for debit entry
20x6
Column 2: for credit entry
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
Column 3: for balance
6 - 10
Learning: Balancing off accounts on computer
Three column lay-out creditor account:
Column 1: for debit entry
20x6
Column 2: for credit entry
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
Column 3: for balance
6 - 11
End of Chapter 6: Balancing off accounts
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007
6 - 12
Chapter 6
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007
6-1
Learning Objective 1, 2 and 3 Understand what is meant by ‘balancing off’ accounts Balance off accounts at the end of a period and bring down the opening Distinguish between a debit and a credit balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-2
Learning balancing off accounts: a debtor account
Debit 2005 Aug 1 Sales Debit total: 482
Credit total: 158
Stage 1: Add up both sides to find out their totals. Do not write anything in the account at this stage
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-3
Learning balancing off accounts: a debtor account Debit 2005 Aug 1 Sales Aug 15 Sales Aug 30 Sales
D. Knight account £ 2005 158 Aug 28 Bank 206 118
Debit total: 482
Credit £ 158
Credit total: 158
482 - 158 = 324 Stage 2: Deduct the smaller total from the larger total to find the balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-4
Learning balancing off accounts: a debtor account with a credit balance
Debit 2005 Aug 1 Sales Aug 15 Sales Aug 30 Sales Sept 1 Balance b/d
Stage 5: enter balance to start off entries for following month b/d = brought down
D. Knight account £ 2005 158 Aug 28 Bank 206 Aug 31 Balance c/d 118 482
Credit £ 158 324 482
324
Stage 4: enter totals level with each other
Stage 3: enter balance here so that totals will be equal
c/d = carried down
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-5
Learning balancing off accounts: a creditor account Debit 2005 Aug 21 Bank
E. Williams account £ 2005 100 Aug 2 Purchases Aug 18 Purchases
Debit total: 100
Credit £ 248 116
Credit total: 364
Stage 1: Add up both sides to find out their totals. Do not write anything in the account at this stage
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-6
Learning balancing off accounts: a creditor account Debit 2005 Aug 21 Bank
E. Williams account £ 2005 100 Aug 2 Purchases Aug 18 Purchases
Debit total: 100
Credit £ 248 116
Credit total: 364
364 - 100 = 264
Stage 2: Deduct the smaller total from the larger total to find the balance
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-7
Learning balancing off accounts: a creditor account with a debit balance
Debit 2005 Aug 21 Bank Aug 31 Balance c/d
E. Williams account £ 2005 100 Aug 2 Purchases 264 Aug 18 Purchases 364
Credit £ 248 116 364
Sept 1 Balance b/d
Stage 3: enter balance here so that totals will be equal c/d = carried down
Stage 4: enter totals level with each other
264
Stage 5: enter balance to start off entries for following month
b/d = brought down
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-8
Learning Objective 4
Prepare accounts in a three column format, as used in computerised accounts.
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
6-9
Learning: Balancing off accounts on computer
Three column lay-out debtor account:
Column 1: for debit entry
20x6
Column 2: for credit entry
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
Column 3: for balance
6 - 10
Learning: Balancing off accounts on computer
Three column lay-out creditor account:
Column 1: for debit entry
20x6
Column 2: for credit entry
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma
Column 3: for balance
6 - 11
End of Chapter 6: Balancing off accounts
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007
6 - 12
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