CHAPTER 33 Converting T Ledger Accounts To Continuous

CHAPTER 33 Converting “T” Ledger Accounts To Continuous Balance Ledger Accounts Based on Qs 2, (Creditor) 7, (Debtor) 11 (Gains) and 12 (Expenses) in the Workbook

Guidelines For Calculating Balances in Continuous Format Ledgers Debtor A/Cs Debit entries Creditor Expense Gains A/Cs Asset A/Cs Add to Subtract Add to previous from previous balance balance Credit entries Subtract Add to from previous balance Subtract from previous balance Liability A/Cs Subtract from previous balance Add to previous balance

Q 2 (A Creditor’s Ledger) Dr M. Malone A/C (A creditor) Date Details F € 10/2/11 Purchase Returns PRB 1 15/2/11 Purchase Returns PRB 1 28/2/11 Balance c/d Date Cr Details F € 2, 000 3/2/11 Purchases PB 1 6, 000 1, 500 5/2/11 Purchases PB 1 9, 000 11, 500 15, 000 1/3/12 Balance b/d 11, 500 This is is a credit entry therefore must bebe entered in in credit column below This a credit entry therefore must entered credit column below This is a debit entry therefore must be entered in debit column below M. Malone A/C Date Details F Debit € Credit Balance € € 3/2/11 5/2/11 Purchases PB 1 6, 000 Purchase PB 1 9, 000 15, 000 10/2/11 Purchases Returns PRB 1 2, 000 13, 000 15/2/11 Purchases Returns PRB 1 1, 500 11, 500

Q 7 (A Debtor’s Ledger) S. Stynes A/C (A debtor) Date Details F 1/6/11 Sales SB 1 20, 000 5/6/11 8/6/11 Sales SB 1 15, 000 30/6/11 Balance c/d 27, 000 35, 000 1/7/11 Balance b/d € Date Details F Sales Rts SRB 1 € 8, 000 27, 000 This is a debit entry therefore must be entered in debit column below Thisisisaacredit debit entry therefore must be entered in debit This creditcolumnbelow S. Stynes A/C Date Details F Debit € 1/6/11 Sales SB 1 5/6/11 Sales Returns SRB 1 8/6/11 Sales SB 1 Credit € 20, 000 8, 000 15, 000 Balance 12, 000 27, 000

Q 11 (A Gain Account) Date Details 31/1/12 Balance c/d F Commission Received A/C (Gain) € Date Details F 22, 500 1/1/12 Balance b/d € 15, 000 10/1/12 Bank CB 1 2, 000 ______ 31/1/12 Bank CB 1 5, 500 22, 500 1/2/12 Balance b/d 22, 500 This is the opening balance and is shown in the Balance column only Both of these are credit entries thus they will appear in the credit column below Date Details Commission Received A/C F Debit € Credit € Balance € 1/1/12 Balance b/d 15, 000 10/1/12 Bank CB 1 2, 000 17, 000 31/1/12 Bank CB 1 5, 500 22, 500

Q 12 (An Expense Account) Light and Heat A/C (Expense)) Date Details 1/2/12 Balance b/d 15/2/12 Bank CB 1 3, 500 28/2/12 Bank CB 1 4, 100 ______ 12, 600 1/3/12 Balance b/d F € Date Details F 5, 000 28/2/12 Balance c/d € 12, 600 Both are debit entriesand thus willinappear in the column debit column Thisof isthese the opening balance is they shown the Balance only below Light and Heat A/C Date Details F Debit Credit Balance € € € 1/2/12 Balance b/d 5, 000 15/2/12 Bank CB 1 3, 500 8, 500 28/2/12 Bank CB 1 4, 100 12, 600