We will be having our first quiz for DOM2234 Principles Of Accounting on this coming Monday 18 December 2017 for Section 1 and 2. As for Section 3 the quiz will be held on 19 December 2017.
Please read, attempt some exercises related to the quiz. Cover topic 1, 2, 3 and 4. Put focus on topic 1 and 2. The quiz is for your carrymarks. Master your Debit and Credit as well as the basic topic of Accounting Equation.
Asalamualaikum and welcome to Junior Apprentice,
As you all know, this usrah module is designed to train your knowledge and skills to become a better businessman with virtuous values. You can refer to this link for references regarding this module…
what we will discuss later is about your grouping, proposal and your marketing strategy. Ultimately you will put all that into practice during the Jumbo Sale Day. Finally, you have to prepare a report and the proceed of the sales made you will have the chance to donate to the organization in need.
See ya later!
Accounts receivables is the money that the business has the right to receive it after the business had provided the other party either goods or services. The accounts receivables are also known as trade debtors where the business engages the activity of selling its goods or services to its customers on credit.
The sales made by cash or by cheque is simple. We just give our customer the goods and we receive money, either cash or cheque. But, when we deal with our customer, asking them to buy or to promote them to buy and we offer them a credit, where they take the goods first and then they will settle the payment later or at a agreed specified date. If this is the case, then we’re having a credit sales. Now, we have persons who owe us money.
A credit sales will eventually creates an account. An account that we are able to receive. That is why we call the person who owe us money an account receivables or a trade debtor. A debtor that comes from a trade activity. it falls under an asset category, specifically under a current asset category. Why? Because this accounts receivable is the person who us money, so, that is our money, they are holding our money. We see them walking around, we see our money in them. That’s is why accounts receivables is an asset.
What is the difference between a person who owe us money but not from the trading transaction?
A person who us money for some other reasons besides trading is known as debtors or we can put them as our sundry debtors. For example, Jack approached us to borrow some money. Since we don’t have some money in our pocket, we decided to lend him some from the business money. So you took some cash from the business and gave it to him. (Please don’t do this, it is not ethical!). Here, you have to record a transaction for the money you took just now from the business. Jack will be our sundry debtors, not an accounts receivables because he didn’t do any trading with us neither buy or sell. So, Jack will be classified under current asset specifically as sundry debtor.
The above concept can also be applied to accounts payable. Just think of the opposite. Okay?
Ok see ya later!
Applicable to #ACC1231, #BUS1233, #CBA1133, #DOM2234
Try this, I took this from a website…http://www.accounting-basics-for-students.com/-debtors-creditors-control-accounts-question-.html which I also don’t know the answer yet. Why don’t you download this, print it and do it. Bring it to class for further discussion. Simple!
The following is a list of balances relating to Phiri Properties Ltd during 2010. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained.
These were as follows:
Debit balance in debtors account 01/01/10 66,300.00
Credit balance in creditors account 01/01/10 50,600.00
Sunday credit balance on debtors ledger 724.00
Goods purchased on credit 257,919.00
Goods sold on credit 323,614.00
Cash received from debtors 299,149.00
Cash paid to suppliers 210,522.00
Discount received 2,663.00
Discount allowed 2,930.00
Cash purchases 3,627.00
Cash sales 5,922.00
Bad Debts written off 3,651.00
Interest on overdue account of customers 277.00
Returns outwards 2,926.00
Return inwards 2,805.00
Accounts settled by contra between debtors and creditors ledgers 1,106.00
Credit balances in debtors ledgers 31/12/10 815.00
Debit balances in creditors ledger 31/12/10 698.00
(a) Prepare the debtors control account as at 31/12/10.
(b) Prepare the creditors control account as at 31/12/10?
Well guys and gals… Here is another video regarding the above topic. God knows how hard to do this coz I’m not an IT savvy. Huh!