This course covers the complete accounting cycle and is designed for those who are interested in working in the areas of bookkeeping, clerical accounting, finance or general office work or are looking to review their accounting knowledge.Our accounting course teaches principles of accounting, which are consistent across the globe. Even though there may be minor differences in accounting principles in different countries, the core accounting principles are the same.

1. Welcome Dear Students
Your “Account Double – any Trouble”

2. Video Accounting course
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3. Lesson 4: Learning Objectives
1 Accounts and The Double – Entry Accounting
system
2 Applying the Rules of Debit and Credit –
Balance Sheet Accounts
3 Business Transaction Analysis

4. Lesson 4 : What You'll learn
WHAT IT IS IMPORTANT WHAT IS NEEDED
UNDERSTAND
Prepare a chart of accounts. Use T accounts to analyze
Explain the purpose of Identify transactions that affect assets,
the normal balance double-entry liabilities, and the owner’s
accounting of accounts. capital account.
Use T accounts to illustrate the Calculate the account balances
rules of debit and credit for after recording business
asset accounts, liability transactions.
accounts, and the owner’s In accounting you need to
capital account and to express analyze transactions into debit
the accounting equation. and credit parts.

5. Key Terms
 chart of accounts
 credit
 debit
 double-entry
 accounting
 ledger
 normal balance
 T account

6. Summary: A chart of accounts
A chart of accounts is a list of all accounts that a business uses.
Each account is assigned a number, and the accounts are listed in numerical
order.
elements.

7. Summary : Double-Entry Accounting System
This system is based on the accounting equation and requires that every business
transaction be recorded in at least two accounts.
The double-entry accounting system also has specific rules of debit and credit
for recording transactions in the accounts.
.

8. It’s Not What It
In accounting debit simply means the Seems
left side of an account and credit means
the right side.
The terms debit and credit might remind
you of debit cards and credit cards.

9. Summary : T- account
An efficient tool for using double-
entry accounting is a T account.
T accounts help the accountant
analyze the parts of a business
transaction.

10. The Rules of Debit and Credit
Balance Sheet Accounts
Debit and credit rules vary
according to whether an account
is classified as :
• an asset,
• a liability
• the owner’s capital

11. The Rules for Assets Accounts
An account’s usual balance is called
its normal balance.
Asset accounts follow three rules of
debit and credit:
• The increase side is the debit
(left) side.
• The decrease side is the credit
(right) side.
•The normal balance for an asset
account is the increase, or the
debit side.

12. The Rules for Liability and Owner’s
Capital Accounts
These accounts follow three rules of
debit and credit:
• The increase side is the credit
(right) side.
• The decrease side is the debit
(left) side.
• The normal balance for liability
and owner’s capital accounts is
the increase, or the credit side.

13. Summary : The Rules of Debit and Credit
Balance Sheet Accounts

14. Summary: 4.
Complete
BUSINESS TRANSACTION ANALYSIS entry in
T-account
 Identify and Classify the
accounts affected
3.
 Determine the amount of 1. Determine
Identify accounts -
increase or decrease for and
each account affected debited
Classify
credited
accounts
 Determine which account
is debited and credited .
For what amount ?
2.
 Complete entry in T-account Determine
accounts -
increase
decrease

15. Follow next Lesson
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revenue, expenses and
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