Summary grade 10/11 accounting general ledger notes (introduction to the section)

Assets
something that adds value to the business
Tip: AA
Assets Add value



Non-current/fixed assets Current assets

Land and buildings Bank
Vehicles Petty cash
Equipment Cash float
Debtors (customers who bought stock on credit)
Trading stock




Owners equity
The amount of money the shareholders have invested in the business

Types Does it increase or decrease Explanation
owner's equity?



Drawings Decrease The owner is taking money out of the
company for personal use


Capital Increase The owner is contributing personal items
towards the business
(it can be money, vehicles or equipment)



Income Increases Increase the total money available in the
Examples: business
Sales
Current
income
Rent income
Interest
income

Expenses Decreases Decreases the total money available in the
business

, Liabilities
Needs to be paid



Non current liabilities Current liabilities

Long term loan Bank overdraft (bank balance is negative)
Mortgage loan Creditors (the business bought items on credit)




Take out more loans - total liabilities increase
Pay back loans - total liabilities decrease