debitcredit - JOURNAL ENTRY DEBIT AND CREDIT CONVENTION The...

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JOURNAL ENTRY DEBIT AND CREDIT CONVENTION The Finance System is a double-entry accounting system. This means that entries of equal and opposite amounts are made to the Finance System for each transaction. As a matter of accounting convention, these equal and opposite entries are referred to as a debit (Dr) entry and a credit (Cr) entry. For every debit that is recorded, there must be an equal amount (or sum of amounts) entered as a credit. For example, if there are debit entries which total $100, then all credit entries must total ($100). Note: It is not the number of debit entries that needs to be the same as the number of credit entries. It is the dollar amount of the debit entries which must be equal to the dollar amount of the credit entries, i.e., there might be two debit entries totaling $100 and three credit entries totaling ($100). By insuring that the debit amounts always equal the credit amounts, the finance system remains in balance. When processing transactions within the Finance System, debits and credits must be
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This note was uploaded on 01/08/2010 for the course ACC 551 taught by Professor None during the Spring '09 term at Ill. Chicago.

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debitcredit - JOURNAL ENTRY DEBIT AND CREDIT CONVENTION The...

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