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what to be debited -what to be credited cheat sheet
Journal-referred to as book of original entry
Debit -=Left side of an accounts
When you receive money from a customer for a service that is going to provided later this is known as liability
Assets are debited in balance sheet to increase them
The Balance sheet accounts revenues earning will have a credit balance if corpation has had a positive amount of retained earnings and its dividends were less then earnings
After a entry is recorded in general journal it posted to an account in the general ledger
When a transaction is recorded their will always be at least two accounts affected
Trial Balance-A listing of all the accounts in the general ledger with debit amounts in one column and credit amounts in another column
The normal balance for unearned revenues or customer deposit account is credit
Money received in advance for services to be given is known as on the balance as deferred revenues-received revenues or customer deposits
A credit to Accounts Payable will cause the balance of that account to increase
Liability accounts in Balance sheet classification are credited to increase them
Less-Type of Account debited Used when proceedings from a sale of an asset used in business is less then book value
Gain-Type of Account credited used when proceedings from a sale of an asset used in business in more then book value
Double Journal Entery-A general journal entry with two accounts
General Journal-type of journal depreciation is recorded witihin
Dividends-Are also known as Drawings
Each journal entry consists of Date-Accounts Titles to be debited along with corresponding amount followed by Account titles to be credited with corresponding ammounts
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