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2. Asset Accounts_____ Debit Credit Increase + Decrease - Balance Balance Rules for Liability and Owners Equity 1. Adding (increase) is on the credit side 2. Subtracting (decrease) on the debit side 3. The normal balance is called a credit balance Provide more space for Cash Accounts because there are more transactions that affect this account. Also, balances are determined by getting the difference between the debit totals and credit totals. Lastly, the balances are the amounts that will be used in the trial balance. Key Take-away: Double-entry Bookkeeping method is a convenient tool to analyze and record transactions. Each transaction has a dual-effect All assets increase are recorded on the Debit side All liabilities and owners equity are recorded on the Credit side. The balances will be used in the trial balance. Your turn, how will the double-entry bookkeeping method help you in your business? Do you have other best practices in recording receipts?