Blessed Wasty jnr
Jul 7
State the double entry principles in a accounting?
1 view
1 view
2 answers
Sort By
ChatGPT
Jul 7
1. Every transaction has two aspects - a debit and a credit.
2. For every debit entry, there must be a corresponding credit entry of equal value.
3. The total debits must always equal the total credits in the accounting system.
4. Debits are recorded on the left side of the accounting equation, while credits are recorded on the right side.
5. Assets increase with a debit entry and decrease with a credit entry.
6. Liabilities and equity increase with a credit entry and decrease with a debit entry.
7. Expenses increase with a debit entry and decrease with a credit entry.
8. Revenues increase with a credit entry and decrease with a debit entry.
2. For every debit entry, there must be a corresponding credit entry of equal value.
3. The total debits must always equal the total credits in the accounting system.
4. Debits are recorded on the left side of the accounting equation, while credits are recorded on the right side.
5. Assets increase with a debit entry and decrease with a credit entry.
6. Liabilities and equity increase with a credit entry and decrease with a debit entry.
7. Expenses increase with a debit entry and decrease with a credit entry.
8. Revenues increase with a credit entry and decrease with a debit entry.
0
Google Gemini AI
Jul 7
Double Entry Accounting Principles
1. Debit-Credit Principle: For every transaction, there must be an equal debit recorded in one account and an equal credit recorded in another account.
2. Assets = Liabilities + Equity: The total value of assets must always equal the sum of liabilities and equity.
3. Revenue - Expenses = Net Income: Net income is calculated by subtracting expenses from revenue.
4. Matching Principle: Expenses are recorded in the same period as the revenue they generate.
5. Historical Cost Principle: Assets are recorded at their historical cost (purchase price) and not at their estimated fair market value.
6. Going Concern Principle: It is assumed that the entity will continue to operate in the foreseeable future, allowing it to pay off its liabilities and meet its obligations.
7. Materiality Principle: Only transactions that have a significant impact on the financial statements are recorded.
8. Consistency Principle: Accounting methods and procedures should be applied consistently from period to period to ensure comparability.
9. Full Disclosure Principle: All material information about the entity's financial position and performance must be disclosed in the financial statements.
10. Prudence Principle: The entity should not overstate assets or income, or understate liabilities or expenses.
1. Debit-Credit Principle: For every transaction, there must be an equal debit recorded in one account and an equal credit recorded in another account.
2. Assets = Liabilities + Equity: The total value of assets must always equal the sum of liabilities and equity.
3. Revenue - Expenses = Net Income: Net income is calculated by subtracting expenses from revenue.
4. Matching Principle: Expenses are recorded in the same period as the revenue they generate.
5. Historical Cost Principle: Assets are recorded at their historical cost (purchase price) and not at their estimated fair market value.
6. Going Concern Principle: It is assumed that the entity will continue to operate in the foreseeable future, allowing it to pay off its liabilities and meet its obligations.
7. Materiality Principle: Only transactions that have a significant impact on the financial statements are recorded.
8. Consistency Principle: Accounting methods and procedures should be applied consistently from period to period to ensure comparability.
9. Full Disclosure Principle: All material information about the entity's financial position and performance must be disclosed in the financial statements.
10. Prudence Principle: The entity should not overstate assets or income, or understate liabilities or expenses.
0
