Acct.201
Ch.2 Notes (Powerpoint)
(formet)
I account
(left) (Right)
Acct name
Debit credit The recording of increases
decreases in
Deb.
cred.
A must
Debits=credits
the accounting equation (cash, rev. exp. etc..)
Just like the tabular analysis (must be in balance)
Debit balance
Credit balance
Debit entries are greater
credit entries are great
than credit entries
er than debit entries
Assets: debits exceed credits /Liabilities : credits exceed debits
Normal balance on increased side
Debit /credit rules:
Dr.
cr.
Assets
= Liabilities + Stockholders' equity
-
+
Coosh,accts.Rec.,SUPP + , equip) (Accts notes pay.) (comm.stock Retained earnings
+ Rev. - exp. dir.
Dr. cr.
Dr.
cr.
Dr.
cr.
Dr. cr. Dr. er. Dr. lcr.
-
-
+
-
+
+ + + -
+
book
contri. to
Recording process (Journal): original entry, transactions in chron. order, rec. Proc.
effects of
A tnal balance has its limitations (multiple mistakes incorrections can
(trans. )
the
be made & balance will remain the samel
pollar signs don't appear in journals or ledgers
