This is a draft cheat sheet. It is a work in progress and is not finished yet.
Depreciation
GL Acc Impacted: |
Depreciation (Expense) Debit |
Accumulated Depreciation (Negative Asset) Credit |
* |
Straigh-line Method: |
Annual fixed percentage |
Asset value x % = Annual Depreciation |
Example: Vehicle Cost =R120,000 x 20% = R24,000 |
* |
Reducing Balance Method: |
Annual percentage of reduced value |
Reduced Asset Value x % = Annual Depreciation |
Example: Remaining Vehicle Cost = R120,000 - R24,000 = R96,000 x 20% = R19,200 |
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Credit Losses
Increase Allowance for Credit Losses |
Credit Losses (Expense) Debit |
Allowance for Credit Losses (Negative Asset) Credit |
* |
Decreasing Allowance for Credit Losses |
Allowance for Credit Losses (Negative Asset) Debit |
Credit Losses (Expense) Credit |
* |
Writing off Credit Losses when allowance for credit losses does NOT exist |
Credit Losses (Expense) Debit |
Debtors Control (Current Asset) Credit |
* |
Writing off Credit Losses when allowance for credit losses DOES exist |
Allowance for Credit Losses (Negative Asset) Debit |
Debtors Control (Current Asset) Credit |
* |
Creating an Allowance for Credit Losses |
Credit Losses (Expense) Debit |
Allowance for Credit Losses (Negative Asset) Debit |
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Pre-paid Expenses
Prepaid Expenses (Expense) Debit |
GL Expense Account (Expense) Credit |
Example: Prepaid Exepenses DR 1000 and Insurance CR 1000 |
Accrued Expenses
GL Expense Account (Expense) Debit |
Accrued Expenses (Expense) Credit |
Example
Water and Electricity DR 500 and Accrued Expenses CR 500 |
Accrued Income
Accrued Income *(Income) Debit |
GL Income Account (Income) Credit |
Example: Accrued Income DR 2500 and Rent CR 2500 |
Income Received in Advance
GL Income Account (Income) Debit |
Income Received in Advance (Income) Credit |
Example: Rent Received DR 2100 and Income Received in Advance CR 2100 |
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