What are Debits and Credits?
What are Debits and Credits? Debit and credit rules sound complicated, but debits and credits are simply the left and right sides of a ledger account. Debit is the left and credit is the right. Remember there are five main types of ledger accounts – assets, liabilities, owners equity, revenue and expense …
Read MoreAccounting Questions and Answers
Accounting Question and Answers These accounting questions and answers will help you get help for your accounting study. As you move through the accounting questions and answers you will be led through some important accounting concepts. Take advantage of the links to the low cost tutorial topics so you understand …
Read MoreSummary of the Debit and Credit Rules
Summary of the Debit and Credit Rules This is a simple summary of the debit and credit rules. Use this rule to determine which accounts to debit and credit in double entry accounting. Because the rule is based on the accounting equation, it will always apply. Use this rule where …
Read MoreThe Accounting Equation
The Accounting Equation The accounting equation is the logic behind double entry accounting or accrual accounting. To understand this logic, you need to know there are five types of transactions in the accounting process. These types of ledger accounts are Assets, Liabilities, Owners Equity, Revenues and Expenses. Because this is …
Read MoreWhat is a Ledger Account?
What is a Ledger Account? The ledger account is the basic unit of an accounting system. These accounts collect information together for similar transactions. Ideally there is a ledger account for each financial transaction type, for example wages, purchases and transport costs. The example below shows a columnar ledger account. …
Read MoreHow are the Debit and Credit Rules Explained?
The Debit and Credit Rules Explained To have the debit and credit rules explained, you must first learn about the accounting equation. There are five different types of ledger accounts. These are Assets, Liabilities, Owners Equity, Revenues and Expenses. Assets, Liabilities and Owners Equity appear in the accounting equation. Because …
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