Your homework was… ‘Exercises’ 1,2,3 on page 82/83.

Slides:

Advertisements

Similar presentations

Debit and Credit Theory. Accounts Accounts are individual items which affect financial position. Examples are bank, mortgage payable, land, equipment.

Advertisements

Analyzing Transactions into Debit and Credit Parts

C2 - 1 Understanding Debits and Credits in Accounting.

An accounting device used to analyze transactions is a called a/an ____________ T ACCOUNT.

Chapter 4 – The Simple Ledger The T- Account A ledger is group or file of accounts that can be stored as pages in a book. Each account (cash account, A/P.

* Debit * An entry recording an amount owed, listed on the left-hand side or column of an account. * Credit * The ability to obtain goods or services.

Debit and Credit Theory. Do not be confused by the cards you have in your wallets and purses. In accounting, Debit refers to the LEFT side of an account.

Week 2.  Lots of transactions occur which affect different accounts.  The business needs to keep track of the different accounts it is accounting for.

Accounting I Understanding the accounting equation, debits, and credits.

BAT4m Unit 1: Chapter 1 September Quiz on Friday September 12, 2014.

Analyzing & Recording Business Transactions

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

The book (or printout) holding all the accounts

TRANSACTIONS THAT AFFECT ASSETS, LIABILITIES AND OWNER’S CAPITAL Chapter 4.

For Every Debit There Is A Credit OR Debits = Credits.

HFT 2401 Chapter 2 Accounting for Business Transactions.

1 Chapter 4 - Ledger Notes. 2 Record increases and decreases in a specific asset, liability, equity, revenue, or expense item. Debit = “Left” Credit =

Analyzing and Recording Transactions C H A P T E R 2 The Beginning 1.

Review: What is the left side of the Accounting Equation called? Assets What is the right side of the Accounting Equation called? Equities: Liabilities.

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The Chart of Accounts chart of accounts A list of all accounts used.

Chapter 2 Balance Sheet Accounts. Terminology An Account is a form where changes in transactions are recorded A T-account helps us learn accounting Left.

HFT 2401 Chapter 2 Accounting for Business Transactions.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2 Objectives: Define accounting terms related to analyzing transactions into debit.

Analyzing Transactions into debit and credit parts Chapter 3.

Double entry Yang Qiongyu School of finance and trade.

ANALYZING TRANSACTIONS INTO DEBIT AND CREDIT PARTS CHAPTER 3.

3–13–1 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Define accounting terms related to analyzing transactions into debit and credit parts Indentify accounting practices related to analyzing transactions.

 Understand and perform double-entry accounting entries.

Chapter 2 Unit 3 Balance Sheet Accounts Mrs. Joudrey.

Chapter 4 Transactions That Affect Assets, Liabilities, and Owner’s Capital What You’ll Learn Calculate the account balances after recording business transactions.

Transactions that Affect Assets, Liabilities, and Owner’s Equity

Analyzing Transactions into Debit and Credit Parts

Balance Sheet Accounts

Using T Accounts / Analyzing the Accounting Equation

Bell Work -Are you enjoying this class so far? -Do you think it is easy or hard? -Is there anything that you don’t understand or are having troubles with?

The 4 Questions You Must Ask When Analyzing a Transaction…

LESSON 2-1 Using T Accounts

Review….. Review…. Your Homework was… Page 96, Exercises 1,2,3 Page 107, ‘Exercise’ 1 A. (Use a T Account Ledger) Do the transactions for this ‘new’

Chapter 3 - Analyzing Transactions into Debit & Credit Parts

That sounds a little confusing.

What You’ll Learn Prepare a chart of accounts.

The Accounting Cycle: Step 2

Double entry accounting

Chapter 4.2 Debit/Credit Theory.

Certified General Accountants

Learning Goals for Today…

Debit & Credit Left side & Right side.

Every “T” Account has: An Increase Side, and A Decrease Side

Chapter 4 Introduction to the Ledger Accounts

Debit and Credit Theory

Example Exercise 1 Debit = Credits Record in Accounts Account

Chapter 2 The Double Entry System for assets, liabilities and capital

ENGINEERING ECONOMICS

How can values be expressed in multiple ways?

Chapter 3 Analyzing Transactions into Debit and Credit Parts

Analyzing Transactions into Debit & Credit Parts

LESSON 2-1 Using T Accounts

Financial Accounting Lesson 2: The Balance Sheet

Introduction Start.

That sounds a little confusing.

Analyzing Transactions into Debit and Credit Parts

LESSON 2-1 Using T Accounts

Point 4 The double-entry system

LESSON 2-1 Using T Accounts

Balance Sheet Accounts

© 2014 Cengage Learning. All Rights Reserved.

Debits and Credits: A Review

Section 2-1: Using T Accounts

Classified Balance Sheet Goes Here

Presentation transcript:

Your homework was… ‘Exercises’ 1,2,3 on page 82/83

1.

2.

3.

Debits and Credits In accounting, we will talk about DR (debits) and CR (credits) DR is associated with the left side of an account. CR is associated with the right side of an account. Remember this!!!!!!!!!!!!!!!

This applies to EVERY account!

Which side is an assets opening balance on? The LEFT side… so the Debit (DR) side Which side is a liability or equity account opening balance on? The Right side…. so the Credit (CR) side!

Debit CR DR Credit

An asset’s beginning balance is on the Debit (DR) side… (the left side If we want to increase the amount in that account… we DR (Debit) that amount. (Put it on the left side!!)

Liabilities’ and equity’s beginning balances are on the Credit (CR) side… (the right side.) If we want to increase the amount in that account… we CR (Credit) that amount. (Put it on the right side!!)

Copy down this chart!! Know this chart!!! (You will need to know this for the rest of your accounting career!)

Using this chart, set up a cash T account with a beginning balance of $10,000. Add $5,000 in cash to that account.

Double Entry accounting… We have said that every place in the world uses ‘Double Entry’ accounting. This means at least two accounts are always affected. The big benefit to this system of accounting is that: Debits (DR) always equal Credits (CR)!!

Transaction 1: The company purchases $200 worth of supplies & pay for it in cash. Our DR (Debit) is to the supplies account for $200. Our CR (Credit) is to the cash account for $200. (decreasing it.) Our DR = our CR !! (And always will!)