foreign [Music] Learners and welcome to tumamina teaching you are tuned into your fifth lesson of Grade 9 EMS in the last lesson in lesson 4 we looked at the cpj and the crj of a trading business in this lesson in lesson five we'll be looking at how you post the crj and the cpj on the general ledger and how to balance the general ledger of a business this lesson is going to work a bit different to the others because this lesson is a bit long we'll split the lessons into two for the first lesson lesson 5.1 we'll be looking at how to post the crj on the general ledger we'll look at lesson 5.2 a bit later first let's have a closer look at the general ledger the general ledger has two main accounts the first one is the balance sheet and the second one is the nominal account let's have a closer look at the balance sheet the balance sheet has the following accounts in it number one Equity accounts which is capital and drawings number two assets number three liabilities and in the nominal account number one income accounts and number two expenses accounts these accounts should be posted in this specific order can you still remember the acronym Dalek this is the acronym we'll be using to realize which side the accounts will be decreasing and increasing whether on the debit or the credit side so in many schools they might use a different acronym to measure the debit and the credit side now for you if you're using something different go ahead but for today's lesson we'll be using the Dalek acronym all right grade 9 Learners this is very very important this is the fundamental of our lesson today the Dalek acronym is what we'll be using and you must know it off by heart the drawings assets expenses or losses increase on the debit side and decreases on the credit side whereas liabilities income and capital increases on the credit side and decreases on the debit side so if you're watching this on YouTube I recommend that you pause memorize this and then move on all right so let's test this concept on a more practical way looking at the table behind me the first account in the general ledger is capital increases on the credit side and decreases on the debit side remember that lick the C you will also post the balance on the plus side of the account which is the credit side in capital's case throwings is the second account and increases on the debit side the da lick the D in the acronym in looking at the table once again we have assets which also increases on the debit side and decreases on the credit side the last balance sheet account is liabilities liabilities increase on the credit side and decrease on the debit side next up let's look at the nominal accounts income is first in line and increases on the credit side the expenses are the last accounts of the general ledger and increase on the debit side all right did you get that let me say it one more time income is first in line and increases on the credit side the expenses are the last accounts of the general ledger an increase on the debit side let's look at the very important accounting principle this is the double entry principle so for every one brand placed on the debit side of the general ledger another one Rand has to be put on the credit side of the general ledger this is the double entry principle the two sides must be the same when you add each side the debit must equal the credit this might seem a bit confusing at first but at the end of this lesson this will make all sense so there is two golden rules when it comes to the general ledger number one if it is a column total in the journal you post the total on the last day of the month number two if it is a sundry account in the journal it is posted on the day that the transaction took place now Learners do you understand that the first one is posted on the last day of the month the second one is posted on the day which is placed in the sundry account okay so now that we've looked at the theory let's put this in practice now if you're not so comfortable with the theory part do yourself a favor and watch the start of this lesson again and be very comfortable with it and I'm sure this will be very easy when we apply it into practice okay great nines let's look at an example on the 20th a business purchase trading stock of 5 500 Rand by macro wholesalers and paid by EFT 0-1 all right so grade nines you should be able to post this on the cpj we did that in the fourth lesson now we're going to do something a bit different which is completely new to you we'll be posting this on the general ledger let's have a look at how this looks like the bank column is created to do a 5 500 Rand on the last day of the month this is because it is a column total it is the last day of the month it is credited because bank is a current asset and it decreases money flows out of the business the trading stock is debited because it is a column total and recorded on the last day of the month the account is debited because it is an asset that increases can you see the double entry the double entry principle is applied for each entry on the debit side of an account there's an entry on the credit side of the account bank is credited and trading stock is debited with the same amount so Grade 9 Learners this is your first time doing this on the general ledger now I want to make sure that you understand this and Know It Off by heart so let's go through it once again the bank column is credited with 5 500 Rand on the last day of the month this is because it is a column total it is the last day of the month it is credited because bank is a current asset and it decreases money flows out of the business the trading stock is debited because it is a column total and recorded on the last day of the month the account is debited because it is an asset that increases all right so let's look at a more difficult example on the 31st the following transaction took place the business sold goods for cash for 4500 Rand the cost price was 3 000 Rand can you remember how to enter this transaction into the crj let's quickly give you a few seconds to think about it if you're watching this in class and you know the next step put up your hand and share with the class what you will be doing next three two one let's go [Music] all right so the next step was to put this on the crj and this is what it would look like so what we do now is we take this information and post it on the general ledger let's see how this will look like column totals are posted at the end of the month the amount is debited because the bank is an asset that increases money flows into the business we received the money trading stock is created with the total of the cost of sales column in the crj the account is credited because trading stock is an asset that decreases stock leaves the business let's look at this transaction one more time on the crj column totals are posted at the end of the month the amount is debited because the bank is an asset that increases money flows into the business we received the money trading stock is created to do the total of the cost of sales column in the crj the account is credited because trading stock is an asset that decreases stock leaves the business sales is created with a total of sales column on the last day of the month column total sales is an income that increases owner's equity on the credit side cost of sales is debited with a total of the cost of sales at the end of the month or the column total cost of sales is an expense that decreases the owner's equity on the debit side okay great nines I'm going to leave this up take some time to reflect and understand why the amounts are placed in the columns that they were placed in [Music] thank you so great knives Let's do an activity together established company at the end of June 2021 the following transactions took place capital for a hundred and fifty thousand Rand trading stock for a hundred and seventeen thousand seven hundred Rand Bank 59 300 Rand sales 93 000 Rand cost of sales 77 500 Rand rent income 50 000 Rand rent expenses eleven thousand Rand and wages twenty seven thousand five hundred Rand so the instruction is open the accounts of the general ledger of ikasikofu company post the accounts on the general ledger and balance the general ledger good luck the journals for August 2021 have been completed the following information appeared on the crj and the cpg remember in lesson 5.1 we'll be looking at the crj in lesson 5.2 we'll be looking at the cpj so in this example we'll be looking at the crj the table behind me shows a typical case of the crj now remember we've already looked at these examples previously and this is how the table should look like from now onwards we'll be looking at this table and posting this on the general ledger so where do we start to bring down the balances on first August 2021 remember Dal lick so Capital will increase on the credit side then apply your principles remember your two golden rules namely column totals at the end of the month and Sunday accounts on the day the transaction took place okay the next account will be Bank as there are no throwings and assets that should be posted after drawings bank is an asset and increases on the debit side of the t account let's bring down the balance so Learners when I say bring down the balance what I'm saying is take the amount on the crj and take it to the general ledger of the account it is a column total so you post the total at the end of the month the hundred and eleven thousand is all the money that we received in the month of August next is trading stock which is also an asset bring down the balance on the debit side the trading stock is credited because it is an asset that decreases stock leaves the business you sold the stock sales is an income so you should bring down the balance on the credit Side Sales is a column total post the total of sales at the end of the month next let's look at cost of sales cost of sales is an expense so the balance will be on the debit side cost of sales is debited because it is an expense that decreases owner's equity on the debit side rent income is an income so you should bring down the balance on the credit side it is a sundry account so you post the amount on the transaction that took place on the 5th income increases on the owner's equity and therefore the account is credited just a note when you're posting the crj to the general ledger you must post the folio numbers for this shows that the amount was posted and then you will post the crj to the general ledger that's it for lesson 5.1 and lesson 5.2 we'll be looking at how to post the cpj into the general ledger [Music]