Previous Ontario School Bookkeeping (1909) Next

 

BOOKKEEPING   9

11. Rules for Journalizing.

The work may be introduced by using any one of the following three alternative methods of journalizing. Each method approaches the subject from a different view-point, but the same result will be attained in the end.

(a) First Method of Journalizing.

  1. For Personal Asset and Liability Aecounts.—Make the person debtor for the amounts which he receives on account and creditor for the amounts which he gives on account.

  2. For Impersonal Asset and Liability Accounts.—Make these accounts debtor for the amounts which the business receives and creditor for the amounts which the business gives.

  3. For Loss and Gain Accounts.—Make these accounts debtor for costs and creditor for proceeds ; or make them debtor for the amounts which the business receives (as costs) and creditor for the amounts which the business gives (for proceeds).

(b) Second Method of Journalizing.

For this alternative method you will consider the classification of accounts into Personal Accounts and Impersonal Accounts only.

  1. For Personal Accounts.—Make the person debtor for the amounts which he receives on account and creditor for the amounts which he gives on account.

  2. For Impersonal Accounts.—Make these accounts debtor for the amounts which the business receives and creditor for the amounts which the business gives.

(c) Third Method of Journalizing.

For this alternative method of journalizing, the classification of accounts need not be taken into consideration until the closing of the Ledger.

I. (a) Determine what the business has received (some thing, use or service) and make the account affected debtor for the amount, then determine what the business has given (some thing, use or service) and make the account affected creditor for the amount.

(b) When the transaction is on account, say a purchase of goods by the business, we receive the goods and give a claim against our business to the person mentioned in the transaction—make Merchandise debtor for the amount of the goods received, and make the person creditor for the amount of the claim given ; or, if the transaction on account be a sale by the business, we receive a claim against the person mentioned and give him the goods—make the person debtor for the amount of the claim, and make Merchandise creditor for the amount of the goods given. In short, make what is received debtor, and what is given creditor.

PERSONAL ASSET- AND -LIABILITY- ACCOUNTS.

12. Instructions to the Pupil.

T. Think of the business as your own, and of yourself as the proprietor, in the exercises which follow. Remember that you are making entries in your own books, not in those of the other party mentioned in the transaction. When another person is mentioned as proprietor, you will be the bookkeeper, and should still think and speak of the business as ours.


Previous Ontario School Bookkeeping (1909) Next