Chapter_2__Key_Terms_and_Concpets

Chapter_2__Key_Terms_and_Concpets - for journal entries...

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Accounting Chapter 2 Key Terms and Concepts In chart of accounts , account numbers are assigned in order of 1) asset 2) liability 3) equity, 4) revenue 5) expense T Account : left side = debit, right side = credit Account Type Normal balance Increased by Decreased By Asset Debit Debit Credit Liability Credit Credit Debit Equity Credit Credit Debit Revenue Credit Credit Debit Expense Debit Debit Credit Journal Entry Form : Date Account to be debited debit amount Account to be credited credit amount Total debits = total credits – for each journal entry Posting process
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Unformatted text preview: for journal entries : ( example page 62) 1) Post amount to account, entering date, journal page #, debit or credit, and account balance 2) Post account number on journal page to signify that part of journal entry has been posted Preparing Trial balance: After all journal entries are posted, the accounts and their balances ( debit or credit) are listed in the trial balance. Debits should equal credits. For a list of possible errors causing unequal trial balance, see pages 76...
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