Anonymous
Apr 2
How to identify the accounts that should be credited and debited in the general journal?
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Apr 2
To identify the accounts that should be credited and debited in the general journal, you need to follow the basic principles of accounting:
1. Identify the transaction: Determine the specific transaction that is being recorded in the general journal.
2. Determine the accounts affected: Identify the accounts that are involved in the transaction. This may include assets, liabilities, equity, revenue, and expenses.
3. Apply the rules of debit and credit: Remember that for every transaction, there must be at least one debit and one credit entry. The rules of debit and credit are as follows:
- Debit: Increases in assets, expenses, and dividends; decreases in liabilities, equity, and revenue.
- Credit: Increases in liabilities, equity, and revenue; decreases in assets, expenses, and dividends.
4. Analyze the impact on each account: Determine how the transaction affects each account involved. Decide whether each account should be debited or credited based on the rules mentioned above.
5. Record the entries: Once you have identified the accounts to be debited and credited, record the entries in the general journal accordingly. Make sure to include the date, description of the transaction, debit amount, and credit amount for each account.
By following these steps and applying the rules of debit and credit, you can accurately identify the accounts that should be credited and debited in the general journal.
1. Identify the transaction: Determine the specific transaction that is being recorded in the general journal.
2. Determine the accounts affected: Identify the accounts that are involved in the transaction. This may include assets, liabilities, equity, revenue, and expenses.
3. Apply the rules of debit and credit: Remember that for every transaction, there must be at least one debit and one credit entry. The rules of debit and credit are as follows:
- Debit: Increases in assets, expenses, and dividends; decreases in liabilities, equity, and revenue.
- Credit: Increases in liabilities, equity, and revenue; decreases in assets, expenses, and dividends.
4. Analyze the impact on each account: Determine how the transaction affects each account involved. Decide whether each account should be debited or credited based on the rules mentioned above.
5. Record the entries: Once you have identified the accounts to be debited and credited, record the entries in the general journal accordingly. Make sure to include the date, description of the transaction, debit amount, and credit amount for each account.
By following these steps and applying the rules of debit and credit, you can accurately identify the accounts that should be credited and debited in the general journal.
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