Charts of Accounts
This account is property owned by a business.
An Asset
The normal balance of an asset account.
Debit
The book of original entry
General Ledger
Where do you get your information from to create a General Ledger?
Journaling Transactions
This account is a debt or obligation of the business.
An Liability
The normal balance of a liability account.
Credit
Transferring data from a journal to a ledger.
Posting
What is a Ledger?
The record-keeping system for a company's financial data.
This account is an owner's financial interest in a business.
Equity
The normal balance of accumulated depreciation.
Credit
What is one example of an Asset?
Cash
Why do we balance the accounts in the general ledger?
To check to ensure that for every transaction.
This account represents all the depreciation expense charged to an asset since the asset was put into service.
Accumulated Depreciation
The normal balance of Owner's Equity.
Credit
What is one example of Equity?
Capital
Do general ledgers have to balance?
It must always be in balance between the credit and debit amounts
This account represents the amount of accounts receivable which management estimates will not be collectible.
Allowance for doubtful accounts
The normal balance of the drawing account.
Debit
A business owned by two or more people who carry on a business for profit and are legally responsible for the debts of the business.
Partnership
How do you balance a general ledger?
Subtracting the total debits from the total credits