MAA103 Lecture Notes - Lecture 7: Accounts Payable, General Ledger, Deakin University

• School: Deakin University
• Department: Business and Law
• Course: MAA103
• Professor: Peter Vuong

Document Summary

An account is an individual accounting record of increases and decreases in a specific asset, liability or owners" equity item: decrease an asset increase a liability increase an owner"s equity item. An accounting entry recorded on the left side of an account, will. An accounting entry recorded on the right side of an account, will: increase an asset account: decrease a liability. Credit (cr) account: decrease an owner"s equity account. You debit to increase expenses, assets and drawings. = you credit to increase liabilities, incomes and capital. Assets = liabilities + (capital drawings) + (revenue expenses) A + d + e = l + c + r. The first step is to analyse the accounts involved in a business transaction. Steps in journal transactions: elements affected, specific accounts, increasing or decreasing elements, debit or credit. 15,000: date, accounts involved, narration, amount of transaction, all business transactions are recorded in the general journal in a manner illustrated above.