Understanding how the accounting equation works is one of the most important accounting skills for beginners because everything we do in accounting is somehow connected to it. Shareholders' equity is the total value of the company expressed in dollars. Put another way, it is the amount that would remain if the company...
Is Accounts Payable Credit or Debit? How To Record, Examples
Accumulated Depreciation is a contra-asset account (deducted from an asset account). For contra-asset accounts, the rule is simply the opposite of the rule for assets. Sal records a credit entry to his Loans Payable account (a liability) for $3,000 and debits his Cash account for the same amount. Sal deposits...
Special Journals Financial Accounting
Any entry relating to the sale of merchandise for cash is recorded in the cash receipts journal. Creating journal entries for each of your sales is an essential bookkeeping skill. You’ll need to use multiple accounts to show that you received money, your revenue increased, and your inventory value decreased...