0
27 June 2013
 Analyzing business transactions would involve a dual
effect in any of the elements of the accounting
equation.
 These d...
 Account – a detailed record of the changes that have
occurred in a particular asset, liability or owner’s
equity during ...
 T-Account – a simplified format of account that resembles
the letter T.
 The vertical line in the letter divides the ac...
 Debit
 Indicates left
 Abbreviated as Dr
 Came from the Latin word debere which originally
meant ‘debtor’
 Credit
 ...
ASSETS = LIABILITIES + OWNER’S EQUITY
Left or debit side
ASSETS
Right or credit side
LIABILITIES AND OWNER'S EQUITY
(REVEN...
 This pattern of recording debits and credits is based
on the accounting equations:
Rules of Debit and Credit
= +
Debit C...
 Franco Diaz invested P100,000 cash to begin his
accounting business.
 The business purchased office supplies on account...
Upcoming SlideShare
Loading in...5
×

Analyzing business transactions through debit and credit 06272013

2,808

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,808
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Analyzing business transactions through debit and credit 06272013"

  1. 1. 27 June 2013
  2. 2.  Analyzing business transactions would involve a dual effect in any of the elements of the accounting equation.  These dual effects would be analyzed and recorded in terms of debit and credit.
  3. 3.  Account – a detailed record of the changes that have occurred in a particular asset, liability or owner’s equity during a period of time.  Consists of three parts:  The title of the account  Left or debit side  Right or credit side
  4. 4.  T-Account – a simplified format of account that resembles the letter T.  The vertical line in the letter divides the account into its left and  right sides. The account title rests on the horizontal line. DEBIT CREDIT left side right side Title of account
  5. 5.  Debit  Indicates left  Abbreviated as Dr  Came from the Latin word debere which originally meant ‘debtor’  Credit  Indicates right  Abbreviated as Cr  Came from the Latin word credere which originally meant ‘creditor’
  6. 6. ASSETS = LIABILITIES + OWNER’S EQUITY Left or debit side ASSETS Right or credit side LIABILITIES AND OWNER'S EQUITY (REVENUE - EXPENSE) Debit balance Credit balance Title of account
  7. 7.  This pattern of recording debits and credits is based on the accounting equations: Rules of Debit and Credit = + Debit Credit Debit Credit Debit Credit for for for for for for Increase Decrease Decrease Increase Decrease Increase ASSETS LIABILITIES OWNER'S EQUITY
  8. 8.  Franco Diaz invested P100,000 cash to begin his accounting business.  The business purchased office supplies on account for P5,000.  The business paid one year rental for its office space, P24,000.  The business paid ½ of the amount owed in buying office supplies.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×