ACC 211 Lecture Notes - Lecture 3: Income Statement, The Ledger, Accounts Receivable

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Individual account record of increases/decreases in a specific asset, liability, or owne(cid:396)"s e(cid:395)uity: consists of 3 parts, title, debits side(left, credits side(right) Debits and credits are used only for the express purpose of recording on the left or right side of the account: debits, abbrev. Dr: debit balance = if debits exceed credits, positive transactions from a tabular summary, credits, abbrev. Cr: credit balance = if credits exceed debits side, negative transactions from a tabular summary. Is increased by debits and decreased by credits: owners drawings decreases owners equity. It is not an income statement account like revenues and expenses: revenues and expenses, revenues. Ch02 recording process: effected the same way as owners capital acct. as this acct. increases owners capital. Increased by credit and decreased by debits: credits to revenue accts should exceed debits, expenses, decrease owners equity, debits increase it and credits decrease it, debits to expense accounts should exceed credits.

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