← Accounting syllabus

SingaporeAccounting

The Double Entry Recording System

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do we close off a ledger account at the period end and carry its balance into the next period?

Balance off ledger accounts and bring down the balance, identifying debit and credit balances
A focused answer to the O-Level Principles of Accounts outcome on balancing accounts. Totalling each side, inserting the balance carried down, bringing it down, and what a debit or credit balance means.
8 min answer →

How do the rules of debit and credit decide which side of an account records an increase?

Apply the rules of debit and credit to the five elements and identify the normal balance of each account
A focused answer to the O-Level Principles of Accounts outcome on the rules of debit and credit. The DEAD CLIC rules for the five elements, the normal balance of each account, and worked entries for everyday transactions.
8 min answer →

How are cash, bank, capital, drawings and expense transactions recorded with double entry?

Record cash and bank transactions, including capital, drawings and expenses, using double entry
A focused answer to the O-Level Principles of Accounts outcome on recording cash and bank transactions. The separate cash and bank accounts, capital and drawings, paying expenses, and contra (cash banked) entries.
8 min answer →

How are credit purchases, credit sales, and returns recorded, and why do we keep separate purchases and sales accounts?

Record credit purchases, credit sales and returns inwards and outwards using double entry
A focused answer to the O-Level Principles of Accounts outcome on recording trading transactions. Credit purchases and sales, trade receivables and payables, returns inwards and outwards, and carriage.
9 min answer →

How is a transaction recorded in T-accounts so that the books always balance?

Record transactions in ledger (T) accounts using the double-entry principle
A focused answer to the O-Level Principles of Accounts outcome on recording in ledger accounts. The layout of a T-account, the dual effect, posting everyday transactions, and the use of cross-references (contra entries).
9 min answer →