Double Entry Bookkeeping (Week 3)

Question 1

What is the Dual Effect?

Answer 1

Every transaction that a business makes has two effects

Question 2

What is the Seperate Entity Concept?

Answer 2

Treat the owner and the business as separate and also look at the transactions from the business point of view

Question 3

Debit on T-account

Answer 3

AID, LDD, inc exp. , drawings

Question 4

Credit on T-account

Answer 4

ADC, LIC, inc rev. , capital