Balancing accounts (Module: 9) COMPLETE

Question 1

What folio should you use for a brought down account? (an account that has its amount carried down to the next accounting period)

Answer 1

b/d

Question 2

What do you do when an account only has one entry?

Answer 2

You leave it as is.

|Dr………………………Rent income…………………….Cr|
|Amount | fol | Reason || Amount| fol | Reason|
|………………………………….||R7000…..|b/d |bank….|

Question 3

What should you do when an account has multiple entries on the same side?

Answer 3

You add up the entries’ amounts and bring down the final amount.

|Dr…………………………..Wages………………………….Cr|
|Amount | fol | Reason || Amount| fol | Reason|
|R7000…..|b/d|Balance ||……………|…….|………….|
|R3000…..|CRJ|bank……||……………|…….|………….|
|R10000…|b/d|Balance||……………|…….|………….|

R7000 + R3000 = R10 000

Question 4

what is the first thing you do to the amounts when an account has multiple entries like so?

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000….|CPJ |Tot_Pay|
|R3000…..|CRJ|Tot_Rec..||…………..|…….|………….|

Answer 4

Add up all the amounts on the side with the highest amount, then place the highest sum to both the debit and credit side like so:

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000…..|CPJ |Tot_Pay|
|R3000…..|CRJ|Tot_Rec..||…………..|…….|………….|
|R10000…|……|…………….||R10000..|…….|………….|

Question 5

You have added up the amounts and added the highest amount to both sides of the T-account like so:

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000…..|CPJ |Tot_Pay|
|R3000…..|CRJ|Tot_Rec..||…………..|…….|………….|
|R10000…|……|…………….||R10000..|…….|………….|

What do you do next?

Answer 5

Deduct the highest amount (debited bank) by the lowest amount (credited bank):

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000…..|CPJ |Tot_Pay|
|R3000…..|CRJ|Tot_Rec.||R2000…..|c/d|………….|
|R10000…|……|……………||R10000…|…….|………….|

R10 000 - R8000 = R2000

c/d = carried down

Question 6

You have added up the amounts and placed the highest amount to both sides of the T-account AND deducted the highest amount (debited bank: R10 000) by the lowest amount (debited bank: R8000) like so:

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000…..|CPJ |Tot_Pay|
|R3000…..|CRJ|Tot_Rec.||R2000…..|c/d|……………|
|R10000…|……|……………||R10000…|…..|……………|

R10 000 - R8000 = R2000

What happens next?

Answer 6

bring down the difference (R2000) you got like so:

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R7000…..|b/d|Balance ||R8000…..|CPJ|Tot_Pay.|
|R3000…..|CRJ|Tot_Rec..||R2000…..|c/d|…………..|
|R10000…|……|…………….||R10000..|……|…………..|
|R2000…..|b/d|Balance ||…………..|…….|………….|

Question 7

This prob wont show up in the exams but how do you balance this:

|Dr…………………………….Bank…………………………..Cr|
|Amount | fol | Reason || Amount| fol |Reason.|
|R20000….|b/d|Balance ||R8000….|CPJ |Tot_Pay|
|R4000…..|CRJ|Tot_Rec..||R8000….|…….|………….|

What do you do to the amounts?