You will have seen that every transaction has 2 effects and that you can have:
2 items increasing;
1 item increasing and 1 item decreasing or;
2 items decreasing
|1 January |6 January |8 January |
|Bank | with child(p) |Van |Cash |Bank | convictionors |
| | | | | | |
We need to record these transactions
each time a transaction is made, we enter the transactions in a book (ledger).
The general/nominal ledger
Each summon in the book contains a different note.
An account is a place where all the information relating to a particular asset, liability, income, expenditure or capital is recorded.
e.g. there will be an account for buildings, electricity, sales, loans, etc.
The double-entry system divides each page into 2 halves so that a buildings account may look like:
|Buildings |
| | |
| | |
|Debit (Dr.) |Credit (Cr.) |
| | |
This type of account is often referred to as a T account.
The left-hand posture of the page is called the debit side. The right-hand side of the page is called the credit side.
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Every building bought will be listed in this...If you want to get a full essay, set out it on our website: Orderessay
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