MMM is the first three letter of the month 00 is day of the month Account

Mmm is the first three letter of the month 00 is day

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MMM is the first three letter of the month. 00 is day of the month. Account Debited is amount increased or added. Account Credited is expenses. xxxx is the amount as indicated in the transaction. Date Particulars Debit Credit YYYY MMM 00 Account Debited xxxx Account Credited xxxx MMM 00 Account Debited xxxx Account Credited xxxx Explanation:
Analyzing the above transaction, you will find out that there would be an increase in asset account. (computer equipment) and a decrease in another asset account (cash) since SNM paid for the equipment. You should therefore increase the asset account by debiting the computer equipment and decrease cash by crediting it. Looking at the chart, you see that asset and expense account have balance increases when they are debited and balance decreases when they are credited . In direct contrast, liability, stockholder’s equity and revenue accounts have balance decreases when they are debited and balance increases when they are credited. These are very important points to know when recording transaction. After analyzing and preparing the business documents, the transaction are then recorded in the journal. A journal, also known as The Book of Original Entry , keeps record of transaction in chronological order . In Double Entry Accounting , transaction are recorded in the journal through journal entries. Two Kinds of Journal: General Journal - It is the simplest form of journal wherein the two column form may be used. Special Journal - Cash Receipt Journal, Cash Payment Journal, Sales Journal, Purchases Journal and some other form of combination journals are special journal. General Journal Date Particulars PR Debit Credit 2015 Mar 17 Computer Equipment 20,000.00 Cash 20,000.00 To record purchase of Computer. A General Journal contains the following columns:
* Date - The date of the transaction is entered in this column in a systematic and chronological manner. * Particulars - This column contains the debit and credit and brief explanation of the entries. * Posting Reference or Folio (PR) - Contain the post reference number or the ledger page in which the account are transferred. * Debit - Contains the amount debited. * Credit - Contains the amount credited. Process in Journalizing Transactions 1. The date of the transaction is on the date column starting from the year month and day of the transaction. 2. The first entry is the account title/s of the debit, and is written at extreme left margin of the second column - Accounts title and explanation The amount of debit is recorded in the Debit column. 3. The next entry is account title of the credit, written on the next line which is indented. The amount of credit is recorded in Credit column 4. After the credit, a brief explanation of the transaction is entered. 5. After each completed journal entry, a space is provided to record the next transaction.

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