1 / 18

4.2 Debit/ Credit Theory

4.2 Debit/ Credit Theory. Debit An entry recording an amount owed, listed on the left-hand side or column of an account. Credit The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit". Review of Debit & Credit.

ikia
Download Presentation

4.2 Debit/ Credit Theory

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 4.2 Debit/ Credit Theory

  2. Debit • An entry recording an amount owed, listed on the left-hand side or column of an account. • Credit • The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit". Review of Debit & Credit

  3. View the video to get an understanding Debit/ Credit Theory

  4. Assets + = Liabilities Owner’s Equity - Increase Decrease - - + + + Debit (DR) Credit (CR) Debit Debit Credit Credit Write at top of handout

  5. Any item on the balance sheet that records changes from that item. • LEDGER  Group of accounts 4.1 Accounts

  6. Assets are increased on the debit side • Liabilities are increase on the credit side • Owner’s Equity is increase on the credit side Increases

  7. Assets are decreased on the credit side • Liabilities are decreased on the debit side • Owner’s Equity is decrease on the debit side Decreases

  8. Accounts are increase on the side they appear in the fundament accounting equation Assets = Liabilities + Owner’s Equity

  9. Accounts are decreased on the opposite side to which they appear in the equation

  10. Complete exercise #1 p. 91 (t), p. 35 (w) • Fill in the boxes with + or -

  11. 6.1 Journal Entry

  12. Ex. 3 p. 91 (t), pg. 35 (w)

  13. Ex. 3 pg. 91-92 (t) Flora Siska

  14. Complete Ex. 4 pg. 92-93 (t) pg. 36(w)Use back side of journal paper to journalize each transaction Crooks Garage

More Related