Double-entry.ppt

Understandhowdouble entryaccountingworks Debitn 借 借方 借记Debitcard借记卡v 计入借方 借计Debitanaccount计入借方账Creditn 贷 贷方 贷记Creditcard贷记卡v 计入贷方 贷计Creditanaccount计入贷方账 Double EntryAccounting Double entryaccountingisbasedonasimpleconcept eachpartyinabusinesstransactionwillreceivesomethingandgivesomethinginreturn Inbookkeepingterms whatisreceivedisadebitandwhatisgivenisacredit TheTaccountisarepresentationofascaleorbalance LucaPacioliDeveloperofDouble EntryAccounting ScaleorBalance ReceiveDEBIT GiveCREDIT Taccount LeftSideReceiveDEBIT RightSideGiveCREDIT T account T account asimplestformofanaccount usedtoillustratetheeffectoftransaction Accountname Debitentries leftside Creditentries rightside Double entryaccountingmeanstorecordthedualeffectsofeachbusinesstransaction Single entryaccounting TheDouble EntrySystem Underthedouble entrybookkeepingsystem thetwofoldeffectofeverytransactionisrecorded e g thecheckstubfromtherentpaymentDr rentExpense Cr Cash 存根 1 Eachtransactionaffectsatleasttwoaccounts 2 Totaldebitsmustequaltotalcredits RulesofTheDouble EntrySystem Owner sEquity Assets Liabilities Debit Debit Credit Debit Credit Credit rulesofdebits credits Thetypeofaccountdeterminesthesideonwhichincreasesanddecreasesarerecorded Therulesofdebitsandcreditskeeptheaccountingequationinbalance TheserulesareshowninaT accountform RulesofDebitandCredit RulesofDebitandCredit 1 NormalBalance RulesofDebitandCredit 2 NormalBalance RulesofDebitandCredit 3 NormalBalance RulesofDebitandCredit 4 NormalBalance RulesofDebitandCredit 5 NormalBalance Anyamountspaidtoitsproprietoraretreatedasappropriationsofprofitandnotasexpensesincurred Withdrawalareamo