3. Double entry bookkeeping Flashcards
1
Q
Ledger accounts
A
Where all double entry occurs
2
Q
DEAD CLIC
A
DR
Expenses
Assets
Drawings
CR
Liabilities
Income
Capital
3
Q
PEARLS
A
DR
Purchases
Expenses
Assets
CR
Revenue
Liabilities
Shareholders equity
4
Q
Double entry bookkeeping
A
2 effects for every transaction
5
Q
DR Entries
A
Increase in assets Decrease in liabilities Decrease in capital Increases in expenses Decreases in revenue
6
Q
CR Entries
A
Decrease in assets Increase in liabilities Increase in capital Decreases in expenses Increases in revenue
7
Q
Summary of steps to record a transaction
A
1 identify the items affected
2 consider if increased or decreased
3 decide whether each account should debited or credited
4 check the debit entry and credit entry are for the same amount
