RSM219H1 Chapter Notes - Chapter 3: Open Mobile Terminal Platform, Debits And Credits, Retained Earnings
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RSM219H1 Full Course Notes
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Synotic journal: recording of transactions that only has a few things. Credit: balances ; increases in l & se. Ensure that the sum of all the debits in the accounts equals the sum of all the credits. They are also called permanent accounts; e. x. retained earnings. Recall: the change in retained earnings during a given period is the increase or decrease due to the net income or loss; the difference between revenue and expenses. , and also the decrease due to the dividends declared. To keep track of the revenues, expenses and dividends; we use temporary accounts: subdivided by the retained earnings during the period. At the end of an accounting period, the balances in the temporary accounts are transferred into the retained earnings account. Revenues, expenses and dividends declared are all shareholders" equity accounts. For revenues: credit means increases and debit means decreases. For expenses and dividends declared, debits mean increases while credits mean decreases.
