1. Chapter 4, Section 2 Applying the Rules of Debit and Credit
What Do You Think?
How many T accounts would you need to analyze a transaction?
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. Applying the Rules of Debit and Credit
SECTION 4.2
Main Idea
Use T accounts to analyze transactions.
You Will Learn
a step-by-step method for analyzing transactions.
how to apply the method to asset, liability, and owner’s capital transactions.
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. Applying the Rules of Debit and Credit
SECTION 4.2
Asset and Equities Transaction
When analyzing business transactions, you should
apply the rules of debit and credit, and
complete the entry in T-account form.
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. Applying the Rules of Debit and Credit
SECTION 4.2
Asset and Equities Transaction
When analyzing business transactions, you should follow this method:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

5. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Owner’s Capital
Use a T account to analyze an owner’s investment in the business:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

6. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Liabilities
Increase an asset and decrease another asset:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

7. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Liabilities
Increase an asset and increase a liability:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

8. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Liabilities
Increase an asset and decrease another asset:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

9. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Liabilities
Decrease a liability and decrease an asset:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

10. Applying the Rules of Debit and Credit
SECTION 4.2
Assets and Liabilities
Increase an asset and decrease a liability:
Glencoe Accounting Unit 2 Chapter 4 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.