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Title: Double entry bookkeeping
Description: A simple method of learning double entry bookkeeping (Debits and Credits).
Description: A simple method of learning double entry bookkeeping (Debits and Credits).
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Double entry bookkeeping - technique
DEBITS
CREDITS
Expenses
Liabilities
Assets
Income
Drawings
Capital
This template shows the natural sides for these items
...
If anything goes down/decreases then it
swops sides
For example if an asset increases, you would debit the specific asset account,
same with drawings and expenses but if an asset decreases then you would
credit the asset account
...
Both are assets so are in the debit side of the template
...
So the journal is:
Dr Computer equipment
Cr Bank
2) Take out a bank loan
Money in "bank" (an asset) has increased but the "Loan" (liability) has also increased
Title: Double entry bookkeeping
Description: A simple method of learning double entry bookkeeping (Debits and Credits).
Description: A simple method of learning double entry bookkeeping (Debits and Credits).