The bookkeeping process - Account balances
4 important questions on The bookkeeping process - Account balances
How do companies keep track of account balances?
- Journal entries
- T-accounts
The debit credit frame work: balance sheet
CREDIT for DECREASE
Liabilities: DEBIT for DECREASE
CREDIT for INCREASE
Equities: DEBIT for DECREASE
CREDIT for INCREASE
The journal entry
The owner of a proprietorship invests personal cash of $20,000
contributed capital equity credit
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A motel writes a $1,500 check to pay its current monthly rent.
cash credit
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