Identify the account(s) debited and credited in each of the four closing entries?
Revenue accounts show credit balances so this should be transferred to Profit and Loss account by debiting the Revenue account and crediting P & L Account in the year end. Similarly the expenses accounts show debit balance, and these accounts should be credited and transferred to P & L account as a closing entry in the year end. Retained Earnings is retained and will appear in the Balance Sheet as it is a capital earning.( not revenue)
ACCOUNTING HW! dentify the accounts to be debited and credited for each transaction.?
Hello there, I assume you mean that Jeff Gore has presented a bill for $700. If so, the accounts payable should be credited to show the amount owed and an expense account (probably repairs expense) should be debited to show the charge against income. On the other hand, if you mean Jeff Gore has been paid $700, then cash should be credited (instead of the a/p). Good luck,
Identify the accounts to be debited and credited for each transaction.?
Asset accounts are debited to record asset increases and credited to record asset decreases. Liability and capital accounts are credited to record increases and debited to record decreases. Recording transactions is a simple matter of deciding what took place in an exchange. You record what you received and you record what you gave up. It makes no sense to try to memorize these entries. The idea is to analyze what was exchanged. You received or gave up assets and you use the debit and credit rules to record that. You incurred a liability (gave a promise to pay later) or you got your promise back because you discharged the liability. Again a credit or debit. Similarly with capital. You issued stock for cash so you received cash (a debit) and record a credit in owners’ equity representing the owner’s interest in the business assets. Or bought back stock giving up cash (a credit) and reducing the owner’s interest in the business (a debit in a capital account). You increase capital (credit revenue) by providing a service or product. You decreases capital (debit an expense) by using up assets or services. As long as you understand what was exchanged, you can decide what to debit and credit. On June 1 the welding company received cash, an asset and it gave the owner an interest in the business (capital). both cash and capital increased 2. an asset and a liability increased 3. an asset decreased and capital decreased (an expense)
The good old days were when the transactions were less complicated and a single diary could be maintained in single entry form by the owner to keep a track of his debtors and cash balance.As the businesses started evolving,transactions became complex and the need for a proper accounting system was felt which introduced the concept of having double entry book keeping system which could give a clear view of balances and often detect and rectify errors at the commitment stage itself.I assume you want to know why the hell double entry system.Simply because now we have various options to go about a transaction and to give a clear indication of how really the transaction was fulfilled we need to show both the effects.Also,if we have studied contracts act,we know that every contract has a consideration and hence we record both the gain as well the consideration paid for it because we have more than one options for paying considerations.
Dear whatever ERP system you are using it contains the chart of accounts.From that chart of accounts you should know how many bank accounts are there as for each bank account it has a GL code number.So if you have passed an entry then you should know which GL number you have debited or credited and from that GL number you will know in which account or through which account the transaction is being processed.Proceeding to your second question every ERP has a chart of account and that chart of account is just for the assistance purpose.You can modify means you can add delete or edit existing account. You can add as many as you want you or you can delete as many as you want.I hope this is the answer of question.
Accounting homework: Identify the two accounts affected by the following transactions:?
John David uses the following accounts in his business. General Ledger: Cash at Bank, Accounts Receivable, Accounts Payable, Office Equipment, Sales Revenue, John David Capital, John David Withdrawals, Advertising Expenses, Rent Expenses, and Utilities Expenses. Identify the two accounts affected by each of the following transactions and indicate whether each account is debited or credited. January 1: John David invested $50,000 in his business. January 4: Billed a customer for goods supplied worth $7,000. January 9: Issued a check for inventory purchased worth $10,000. January 12: Salaries paid to the staff $5,000.