Wednesday, August 10, 2011
Please check these T Accounts and tell me any corrections?
For every transaction there has to be at least one debit and one credit to different accounts. After looking over your answers, I can see that you don't really have a grasp of accounting principles. The main problems I see (among others) is your handling of ets and liabilities. Whenever you gain or increase an et (cash, accounts receivable, merchandise, equipment, etc.) it is always a debit to that account.Whenever you lose or reduce an et, it's a credit. Whenever you gain or increase a liability, such as accounts payable, it is always a credit to that account. Whenever you lose or reduce a liability, it is a debit. Also, revenues are always credits. Go over each transaction again and check it against your textbook. Good luck
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