ACCT 2301 Week 2 Discussion 1 | Assignment Help | Central Texas College
- Central Texas College / ACCT 2301
- 30 Apr 2021
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- Accounting & Economics Assignment Help / Accounting basics
ACCT 2301 Week 2 Discussion 1 | Assignment Help | Central Texas College
Discuss the debit/credit
rules. Do not over analyze these rules. You should just memorize them. You
should also be familiar with the recording process. This process requires that
you first analyze each business transaction to determine which accounts are
affected by the transaction. Enter each transaction in the general journal and
then "post" each transaction to the individual accounts in the
general ledger. After you have posted all of your transactions to the general
ledger accounts, a trial balance should be prepared to prove the equality of
your debits and credits. I find acronyms helpful when memorizing rules.
The following acronyms
may be helpful as you memorize debit/credit rules. For INCREASES to the
accounts: Use the acronyms DEA and CLR.
DEA: debit Dividends, Expenses, and Assets to INCREASE
these accounts. (Decreases are the opposite).
CLR: credit Common Stock, Liabilities, and Revenues/Retained Earnings to INCREASE these accounts.
(Decreases are the opposite.)
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