DrCrMemoryAid

DrCrMemoryAid - List the types of classifications of...

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RULES OF DEBIT AND CREDIT – MEMORY AID “After Eating Dinner” Approach: The rules of debit and credit can also be explained with the following saying: After eating dinner, let’s read the comics. Here’s how it works. A fter E ating D inner, L et's R ead the C omics Accounts increased Accounts increased with a debit: with a credit: A ssets L iabilities E xpenses R evenues D ividends C apital Stock “ALICE” Approach: The rules of debit and credit can also be explained using the Acronym “ALICE.”
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Unformatted text preview: List the types of classifications of accounts: A = Assets L = Liabilities C = Capital Stock I = Income (Revenue) E = Expense Arrange the letters to read ALICE. Then list normal balances by the side of each. A = Dr. L = Cr. I = Cr. C = Cr E = Dr. Note that ALICE begins and ends with normal Dr. balance accounts while the three middle classifications are normal Cr. balance accounts....
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