,
, Posting to the Debtors Ledger and
General Ledger
Posting to the Debtors Ledger • A document with the following information is issued
when a transaction occurs between a business and a
• Debtors Ledger = subsidiary ledger that has separate
debtor:
accounts for each debtor.
• Each debtor’s individual account summaries all their T2: Financial - Debtors name.
- Transaction date.
transactions and indicates how much they owe the literacy: Credit - Type of transaction.
business.
• Individual entries with debtors are posted daily from the
transactions – - Amount.
debtors (A) • The original document is given to the debtor.
journals to the debtors ledger.
• The duplicate document is used to enter the
-
transaction into a journal book as the book of first
entry:
• Key points for when posting to the Debtors Ledger: - If money is received from the debtor as payment
- The journal entry is posted to the individual account of the debtor on the on the account – a receipt is issued and the
day of the transaction. duplicate receipt is used to enter the transaction
- Source document and number is indicated in the details column. into the CRJ.
- The relevant debtor’s folio number is entered in the journal as reference - From a credit sale to a debtor – a credit invoice is
to which account it was posted. issued, and the duplicate credit invoice is used to
- Credit purchases increase the amount the debtor owes (A+) – the debtors
enter the transaction into the DJ.
account is debited.
-
- The amount the debtor owes will decrease when payments are made on
the debtors account (A-) – the debtors account is credited.
- After each new entry, the balance is calculated as follows:
* Opening balance + Debit entry = Closing balance.
* Opening balance – Credit entry = Closing balance.
- If the debtor owes money it is written as an opening balance on the first
day of the month as account rendered.
- A list of all the end balances owed by the debtors is compiled on the last
day of the month – the debtors list.
- The total of the debtors list and the end balance of the debtors control
account in the General Ledger must be equal.
-
GR9 ACC T3 Mind Map Via Afrika Copyright © www.summariessa.co.za (DO NOT COPY)
, Posting to the Debtors Ledger and
General Ledger
Posting to the Debtors Ledger • A document with the following information is issued
when a transaction occurs between a business and a
• Debtors Ledger = subsidiary ledger that has separate
debtor:
accounts for each debtor.
• Each debtor’s individual account summaries all their T2: Financial - Debtors name.
- Transaction date.
transactions and indicates how much they owe the literacy: Credit - Type of transaction.
business.
• Individual entries with debtors are posted daily from the
transactions – - Amount.
debtors (A) • The original document is given to the debtor.
journals to the debtors ledger.
• The duplicate document is used to enter the
-
transaction into a journal book as the book of first
entry:
• Key points for when posting to the Debtors Ledger: - If money is received from the debtor as payment
- The journal entry is posted to the individual account of the debtor on the on the account – a receipt is issued and the
day of the transaction. duplicate receipt is used to enter the transaction
- Source document and number is indicated in the details column. into the CRJ.
- The relevant debtor’s folio number is entered in the journal as reference - From a credit sale to a debtor – a credit invoice is
to which account it was posted. issued, and the duplicate credit invoice is used to
- Credit purchases increase the amount the debtor owes (A+) – the debtors
enter the transaction into the DJ.
account is debited.
-
- The amount the debtor owes will decrease when payments are made on
the debtors account (A-) – the debtors account is credited.
- After each new entry, the balance is calculated as follows:
* Opening balance + Debit entry = Closing balance.
* Opening balance – Credit entry = Closing balance.
- If the debtor owes money it is written as an opening balance on the first
day of the month as account rendered.
- A list of all the end balances owed by the debtors is compiled on the last
day of the month – the debtors list.
- The total of the debtors list and the end balance of the debtors control
account in the General Ledger must be equal.
-
GR9 ACC T3 Mind Map Via Afrika Copyright © www.summariessa.co.za (DO NOT COPY)
