Escolar Documentos
Profissional Documentos
Cultura Documentos
Objectives
2
Concepts and principles of accounting Balance Sheet & Income statement equations Primary accounts for assets, liabilities, revenues and
Introduction to Bookkeeping
4
What is a Journal?
What is a ledger?
The Journal
5
source: unknown
Source: unknown
format called T-accounts The left side of the T is called the DEBIT side The right side of the T is called the CREDIT side Depending on the account, a debit or credit can signify an increase or decrease in the value of that account NOTE: Do not fall into this trap! Generally in business, debits enhance the business-credits take away from the business. Debit DOES NOT MEAN POSITIVE
ASSETS
= LIABILITIES
+OWNERS EQUITY
Debit
Credit
Debit Credit
Debit
Credit
Capital are credits Withdrawals.. are debits Revenues (Sales) are credits Expenses are debits
Lets do an example
300
Revenue (Sales)
Increases in revenue are recorded as credits? Why Value of the transaction is favorable to owner (increases the dollar amount of equity owed to the owner Increases in expenses are recorded as debits? Why Transaction causes money to flow out of the business thus reducing the value of equity owed to the owner
Expenses
ASSETS
= LIABILITIES
+OWNERS EQUITY
Debit
Credit
Debit Credit
Debit
Credit
Capital are credits Withdrawals.. are debits Revenues (Sales) are credits Expenses are debits