Double entry system of accounting and transactions
Every transaction is recorded in two steps
What is:
A debit (or debit)
A credit (or credits)
A creditor has a debit balance.
What is an exceptional balance?
Payment on account
What is money is paid out to a creditor to decrease the amount owed?
The left side of a T-Account
What is a debit?
Whenever a transaction occurs, changes must be made in the ______
what is accounts?
Which accounts would be DR/CR?
Received $100 from Kanye West to reduce the amount owed.
What is D/R - Cash
What is C/R - A/R - Kanye West
Sale On Account
What is an item being sold on credit (and paid for later)?
The equity balance on a t-account
What is a credit?
For each transaction, all of the account changes together must __________
What is
balance
Which accounts would be DR/CR and what amount should be written under each category:
KSI got paid $15,000 from Spotify for 5 million streams from his song "Thick of It."
What is
Bank D/R 15000
Owners equity C/R 15000
Purchased $125 of sports equipment from SportChek on Account
What is a Purchase on Account
The definition of a ledger
What is a group or file of accounts?
Debit decrease in an equity account. This must happen to credit:
What is an increase?
Which accounts would be DR/CR and what amount should be written under each category:
Received $500 cash for an old laptop. The laptop was originally bought for 2000.
What is:
Bank - Debit $500
Equipment - Credit $2000
Capital Debit $1500
State the type of "On Account" transaction: Received $475 from Ice Spice on account.
What is a receipt on account?
The use of a trial balance
What is
used to see if the dollar value of the accounts with debit balance is equal to the dollar value of the accounts with credit balances.
In a double entry system, an asset account is debited. State what must happen to another account:
What is another account being credited?
Which accounts would be DR/CR and what amount should be written under each category:
Received $600 cash for school supplies because they were outdated. The school originally bought it for $1000.
What is:
Bank - Debit $600
Supplies - Credit $1000
Capital- Debit $400
State the type of "On Account" transaction and the affected accounts: Purchased $250 of of supplies from Dollarama on Account.
What is a purchase on Account?
What is DR - Supplies?
What is CR A/P - Dollarama?
Heading of a Trial Balance and name any two steps to form a Trial Balance
What is:
Who- Name of individual or business
What - Trial Balance
When - Date
List all of the accounts and their balances. Place the debit balances in the debit column and the credit balances in the credit column. Add up the two columns. See if the two column totals are the same. If they are, write the totals and finish by drawing a line above and a double line below them to indicate a final balance amount