Journal Entries

Question 1

what is newton’s 3rd law and how does that correlate with journal entries?

Answer 1

every action has an equal and opposite reaction

journal entries always have equal and opposite accounting reactions (debits & credits)

double entry bookkeeping

Question 2

what is accounting all about?

Answer 2

tracking financial events

Question 3

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 3

cash is credited by £30,000

Question 3

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 3

cash is credited by £30,000

Question 3

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 3

cash is credited by £30,000

Question 3

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 3

cash is credited by £30,000

Question 4

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 4

cash is credited by £30,000

Question 4

if i bought a car for £30,000, car is debited by £30,00 as i now own a car worth that much

what other account is affected?

Answer 4

cash is credited by £30,000

Question 5

what does dr and cr mean?

Answer 5

debit & credit

Question 6

do assets go up or down when credited/debited?

Answer 6

assets go up when debited

assets go down when credited

Question 7

are credit or debit accounts indented on a journal entry?

Answer 7

credit accounts are debited

Question 8

what must be included on a journal entry?

Answer 8

• an account being credited
• an account being debited
• a journal entry description
• a date

Question 9

are currency signs included on journal entries?

Answer 9

no

Question 10

how is revenue affected when credited/debited?

Answer 10

revenue is a credit account and goes up when credited, down when debited

Question 11

how are expenses affected when credited/debited

Answer 11

expenses are debit accounts and go up when debited, down when credited

Question 12

how are dividends affected when credited/debited?

Answer 12

dividends are debit accounts and go up when debited, down when credited