Question
Asked Aug 19, 2019
18 views

How do you know which account debits and credits go in? 

How do you log into the general journal? General ledger?

How do you do the income statements and balance sheets?

check_circle

Expert Answer

Step 1

We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.

Step 2

The accountancy process begins with passing journal entries. There are three golden rules of accounting which must be learnt before beginning to do accounts

1. Personal Accounts- Debit the giver and credit the receiver. Personal Account means an account relating to a person like Harry, Peter etc.

2. Real Accounts- Debit what comes in and credit was goes out. Real Accounts relate to any account which exists in real like Cash, building, land etc.

3. Nominal Accounts-Debit all expenses and losses and credit all income and gains. Nominal account relates to all items of expenses like stationery purchased, cost of goods sold and revenues like sales, interest received.

Step 3

let us understnd these with few entries-

a) Say, Sophie my friend gives me stock worth $5,000

 So, there are two accounts involved Sophie and Stock/Inventory. Sophie is a person and so a personal account and since she has given materials, she needs to be credited. Stock is a real account and since it has come in the business, it is debited

b) I ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Noah Yobs, who has $75,400 of AGI (solely from wages) before considering rental activities, has $67,...

A: We have solved part (a) as part (b) where it is asked to complete Form 1040 (page1) all the personal...

question_answer

Q: A portion of the stockholders’ equity section from the balance cheet of WC appears as below. Stockho...

A: Cash dividends A profitable organization can distribute a part of their profit to the shareholders a...

question_answer

Q: How I recorded the following transactions in general journal for BM, Inc. Include with a brief expla...

A: Transaction 1:Cash is a current asset, and it is increased. Therefore, debit cash account for $360,0...

question_answer

Q: Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem ...

A: Variable costing: This is a costing method that includes variable manufacturing costs to compute the...

question_answer

Q: Comparing three depreciation methods Obj. 2Dexter Industries purchased packaging equipment on Januar...

A: Calculate the amount of depreciation expense under straight line method.

question_answer

Q: Brief Exercise 15-10Sweet Inc. declared a cash dividend of $2.2 per share on its 5 million outstandi...

A: Journal: Journal is the method of recording monetary business transactions in chronological order. I...

question_answer

Q: Problem 14-5In each of the following independent cases, the company closes its books on December 31....

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to...

question_answer

Q: Discuss why small businesses might not choose to extensively engage in the budget process.  Also dis...

A: Budgeting is an important part of the business process. Without budgeting a business can not track i...

question_answer

Q: Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells fo...

A: Calculate the desire profit of Comdex Incorporation.