Академический Документы
Профессиональный Документы
Культура Документы
Debit/Credit Bookkeeping
Assets = Liabilities + Shareholders Equity
Assets = Liabilities + Contrib. Capital + Retained Earnings + Revenues Expenses
Assets + Expenses = Liabilities + Contrib. Capital + Retained Earnings + Revenues
Debits
Credits
T Account
A record of all changes in an accounting quantity
Debits are listed on the left side of the T
Credits are listed on the right side of the T
Account Balance
Difference between sum of debits and sum of credits for the account
1,000
100
1,020
Beg. Balance
End. Balance
Super T-account
Assets
Assets
Dr.
+
Cr.
-
Cr.
+
Contributed
Capital
Dr.
-
Cr.
+
Retained Earnings
Dr.
-
Cr.
+
Expenses
Dr.
+
Cr.
-
Revenues
Dr.
-
Cr.
+
Bookkeeping Examples - I
Increase an asset and increase a liability or equity
=
=
Liabilities
100
+
+
Equity
0
Journal Entry
Dr. Cash (+A)
100
100
T - accounts
Cash (A)
100
Bal. 100
Bookkeeping Examples - II
Decrease an asset and decrease a liability or equity
=
=
Liabilities
(20)
+
+
Equity
0
Journal Entry
Dr. Notes Payable (-L) 20
Cr. Cash (-A)
20
T - accounts
Cash (A)
100
Bal. 80
20
100
80 Bal.
Liabilities
0
+
+
Equity
0
Journal Entry
Dr. Inventory (+A)
10
10
T - accounts
Cash (A)
100 20
10
Bal. 70
Inventory (A)
10
Bal. 10
Bookkeeping Examples - IV
Increase a liability or equity and decrease another liability or equity
Issue $80 in Common Stock to pay off the bank loan
=
=
Liabilities
(80)
+
+
Equity
80
Journal Entry
Dr. Notes Payable (-L)
80
80
T - accounts
Cash (A)
100 20
10
Bal. 70
Inventory (A)
10
Bal. 10