3.4 Opening of a new business ...........................................................................................................................................................................29 3.5 Banking and bank accounts .......................................................................................................................................................................29 3.6 Guidelines for receiving and depositing money................................................................................................................30 3.7


Guidelines for paying money.....................................................................................................................................................................32 3.7.1 Credit cards....................................................................................................................................................................................................32 3.7.2 Cheque..................................................................................................................................................................................................................32


3.8 Internet banking........................................................................................................................................................................................................35 3.9 Withdrawal slip...........................................................................................................................................................................................................35 3.10 Debit card slip...............................................................................................................................................................................................................35


Module 4 – Accounting Principles and Definitions 4.1 Definition of concepts........................................................................................................................................................................................38 4.1.1 Assets......................................................................................................................................................................................................................38 4.1.2 Owner’s equity............................................................................................................................................................................................38 4.1.3 Liabilities...........................................................................................................................................................................................................39 4.1.4 Capital..................................................................................................................................................................................................................40 4.1.5 Acquisition of non-current assets ...................................................................................................................................40 4.1.6 Current assets and liabilities....................................................................................................................................................41 4.1.7 Income and expenses..........................................................................................................................................................................42 4.1.8 Purchase and sale of trading inventory .....................................................................................................................42


4.2 Cycle of trading activities..............................................................................................................................................................................42 4.2.1 Steps in the accounting cycle...................................................................................................................................................43 4.3 The accounting equation................................................................................................................................................................................44


Module 5 – Accounting Entries of a Trading Concern and Trial Balance 5.1 The General Ledger................................................................................................................................................................................................52 5.2


Apply the double-entry principle........................................................................................................................................................53 5.5


5.3 Grouping of ledger accounts......................................................................................................................................................................56 5.4 The inventory systems........................................................................................................................................................................................56 5.4.1 Procedures........................................................................................................................................................................................................56 5.4.2 Cost price..........................................................................................................................................................................................................57 5.4.3 Sales.........................................................................................................................................................................................................................58 The periodic inventory system...............................................................................................................................................................60


5.6 The Trial Balance......................................................................................................................................................................................................63 5.6.1 Purpose of the Trial Balance.....................................................................................................................................................63


Module 6 – Trading Organisation: Subsidiary Journals and Posting to the General Ledger 6.1 Cash Receipts Journal.........................................................................................................................................................................................72 6.1.1 Posting from the Cash Receipts Journal to the General Ledger..................................................73


6.2 Cash Payments Journal.....................................................................................................................................................................................76 6.2.1 Posting from the Cash Payments Journal to the General Ledger...............................................77 6.2.2 Cash Receipts Journal and the Cash Payments Journal.........................................................................81 6.3 Analysis Cash Book...............................................................................................................................................................................................89


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196  |  Page 197  |  Page 198  |  Page 199  |  Page 200  |  Page 201  |  Page 202