Thursday, March 25, 2010

Recording Business Transactions


ACCOUNT 
An account is an individual record or form to record and summarize information for each asset, liability, or owner's equity transaction. Each account will have a title and number.
 Debit means left side
 Credit means right side. 
A “T” ACCOUNT is so named because it looks like a capital T. Use this form of an account to help you determine whether the amount is placed on the left (debit) or right (credit) side of the account. 
It is important that you think of debits and credits as only meaning left and right! Double-entry accounting
means that there will be at least two (2) accounts affected by each transaction.
 

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