Principles of Accounting I Asst Prof Dr Panchat

Principles of Accounting I Asst. Prof. Dr. Panchat Akarak p. thipnew 1@hotmail. com School of Accounting Chiang Rai Rajabhat University Accounting I 1

Accounting Equation สนทร พย )Assets) == หนสน )Liabilities ) + สวนของเ จาของ )Equity)

Accounting Equation ซาย = Debit (Dr. ) สนทรพ ย )Assets) == หนสน )Liabilities ) ขวา= Credit + สวนของเ จาของ )Equity)

Accounting Equation Assets Liabilities + Equity Assets Increase Assets Decrease Liabilities Increase Equity Decrease Equity Increase

Accounting Equation Assets Liabilities + Equity Assets Increase Assets Decrease Liabilities Increase Equity Decrease Equity Increase Revenue Decrease Revenue Increase Expense Decrease

Accounting Equation Assets Liabilities + Equity Assets + Assets - Liabilities + Equity - Equity + Revenue - Revenue + Expense -

Financial Position Assets Liabilities + Equity Assets + Assets - Liabilities + Equity - Equity +

Income Statement Revenue - Revenue + Expense -

General Journal Date Account Titles and Explanation P. R. Debit amount Credit amount

Journal General Date Page 1 P. R. DEBIT CREDIT amount Account Titles and Explanation 2017 June 1 Cash 2 Equipment Capital-Jamical Building Land Cash Note Payable 200, 000 - 130, 000 - 330, 000 - 200, 000 - 600, 000 - 100, 000 - 700, 000 -

Account Chart Categories AC. No 1. Assets 11 1001 2. Liabilities 21 2001 3. Equity 31 3001 4. Revenue 41 4001 5. Expense 51 5001

Account Chart • 1. Assets No. 1 Cash at bank Account Receivable Note Receivable Supplies Land Building Equipment 11 12 13 14 15 16 17 18

Account Chart 2. Liabilities No. 2 Bank Overdraft Account Payable Note Payable Interest Payable Rent Payable Tax Payable Long term loan Bond 21 22 23 24 25 27 28 26

Account Chart 3. Equity No. 3 Capital Stock Surplus Capital Retained Earning -------Capital. Drawing- 31 32 33 31 32

Account Chart 4. Income/Revenue No. 4 Service Revenue Rent Revenue Interest Revenue ---------------Sale Revenue Rent Revenue Other Revenue 41 42 43

Account Chart 5. Expense No. 5 Payroll expense Rent expense Advertising expense Utilities expense Fuel expense Insurance expense Supplies in used 51 53 54 25 56 57 58

Journal General Date Page 1 P. R. DEBIT CREDIT amount Account Titles and Explanation 2017 June 1 Cash 2 Equipment Capital -Jamica Building Land Cash Note Payable 200, 000 - 130, 000 - 330, 000 - 200, 000 - 600, 000 - 100, 000 - 700, 000 -

General Ledger-T Account A/C. . . . . Debit Credit Transactio pa Dat Transact pa amoun Date n ge e ion ge nt t

Ledger 3 columns A/C. . . . . Date Transaction Pag Debit Credit Balance e amount

Ledger 4 columns A/C. . . . . Date Transaction Debit Credit Pag amou e nt nt Balance Dr. Cr.

Recorded on General Journal DATE 25 x 5 Jun. 1 2 5 Descriptions Ref. Cash in Bank Equipment Capital- Sansuk invest asset to capital Rent exp. Cash Paid Rent exp. Supplies Cash in bank Purchase supplies on cheque DEBIT Amount 120, 000 150, 000 300, 000 20, 000 10, 000 CREDIT Amount 570, 000 20, 000 10, 000

Posted to GL DATE June 1 5 15 20 25 30 Description Capital Revenue Account Rec. Rent revenue Revenue Note rec. Cash Account no 11 DEBIT. Ref. Amount 120, 000 13, 500 8, 800 3, 000 5, 000 A/C DATE Description June 2 6 10 12 15 18 20 Rent Supplies Equipment Rent expense Salary expense Utilities expense Equipment Ref. CREDIT Amount 20, 000 18, 000 3, 000 10, 000 1, 000 50, 000 -

Posted to GL Cash in Bank DATE June 1 Description Capital 140, 000 Ref. DEBIT Amount DATE 150, 000 June 5 A/C no Description Supplies CREDIT Amount Ref. 10, 000

Posted to GL Supplies DATE Description Ref. DEBIT Amount A/C no 14. DATE Description CREDIT Amount Ref. June 5 Cash in bank 10, 000 - 6 Cash 20, 000 10, 000 -

Pencil Footing Balance of General ledgers • 4 Steps 1) total Debit side 2) total Credit side 3) Deduct total Debit and total Credit 4) Difference balance in Transaction more than side

Pencil Footing Summary balance as; Assets Balance Dr. Liabilities Balance Cr. Equity Balance Cr. Revenue Balance Cr. Expense Balance Dr.

Trial Balance Account Titles amount Ac No. DEBIT CREDIT Cash Accounts receivable Supplies on hand Unexpired insurance Land Building Accumulated depreciation-building Equipment Accumulated depreciation-Equipment Accounts payable Capital-Brown 41, 000 3, 000 2, 000 5, 000 70, 000 30, 000 6, 000 300, 000 11 12 13 14 15 16 17 18 19 21 31 41, 000 3, 000 2, 000 5, 000 70, 000 300, 000 30, 000 6, 000 300, 000 Drawing-Brown Commissions revenue Payroll expense Depreciation building expense Depreciation equipment expense Utilities expense 5, 000 158, 000 25, 000 15, 000 3, 000 1, 000 32 41 51 52 53 54 5, 000 25, 000 15, 000 3, 000 1, 000 500, 000 158, 000 500, 000 Total

Accounting Cycle 1 Posted Entries to Ledger Accounts Prepare Unadjusted Trial Balance Record Reversing Entries/ Opening Entries Prepare Post. Closing Trial Balance Adjusting Journal Entries Prepare Adjusted Trial Balance Record Closing Entries Prepare Financial Statement Recorded Journal Entries

Step of bookkeeping Step 1 Recorded 1. General Journal Step 2 Posted 2. Ledger/ GL Step 3 Balance Accounts 3. Trial Balance Step 4 Recorded Adjusted 4. General Journal Step 5 Prepare worksheet 5. Working Paper Step 6 Prepare F/S 6. Financial Statement Step 7 Prepare Closing 7. General Journal Step 8 Recorded Opening/ 8. General Journal Reversing entries

The End Thank you for your Attention Q & A