Concept explainers
Internal Control:
Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. The internal controls are framed in an organization to eliminate the internal control deficiencies of the organization.
Procedure for debiting and crediting an account:
- Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.
- Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.
All transactions affect the
To record: The journal entries for transaction (a) and transaction (b).
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Principles Of Financial Accounting 12e + Wileyplus Registration Card
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