These refer to the original documents that provide evidence of a transaction, such as invoices, receipts, contracts, purchase orders, bank statements, and sales orders.
An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense.
So first off, it is important to identify which category this account belongs to: 'Asset, Cash, Equity'?"
Cash, Accounts Receivable, Note Receivable(应收票据), Prepaid Accounts, Supplies Accounts, Equipment Accounts, Buildings Accounts, land
Accounts Payable, Note Payable, Unearned Revenue Accounts(预收账款), Accrued Liabilities(应计负债)
Just remember the equation (used later)
Equity= Owner's capital- Owner's withdrawals+ Revenues- Expenses
Please note that Discounts Received is part of Revenues.
T-Account
An example: Page 54 of the book
Let's expand and rearrange the equation, namely:
Assets+ Owner's withdrawals+ Expenses= Liabilities+ Owner's capital+ Revenues
Remember, if the element of the left side increases, it is to 'debit the account'; if decreasing, it is to credit the account. And visa versa.
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