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Wait Up!! Debit & Credit Review I Like Accounting.

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Presentation on theme: "Wait Up!! Debit & Credit Review I Like Accounting."— Presentation transcript:

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2 Wait Up!! Debit & Credit Review I Like Accounting

3 Index Title Page IndexIntroductionRevenueExpenseDrawing Debit and Credit In The Expended Ledger Expanded Ledger Trial Balance Credit

4 Introduction During this PowerPoint presentation, Dr. Bob is going to present you Debit and Credit in The Expanded Ledger. Also he is going to show you some fun ways of learning accounting in a fast way. So please be seated and pay attention to the screen for the next half hour…. Thank You !! During this PowerPoint presentation, Dr. Bob is going to present you Debit and Credit in The Expanded Ledger. Also he is going to show you some fun ways of learning accounting in a fast way. So please be seated and pay attention to the screen for the next half hour…. Thank You !!

5 Revenue In the expend ledger, three special accounts are created and one of them is Revenue. Revenue is an increase in equity resulting from the sale of goods or services in the usual course of business. But you have to remember that Revenue is a credit entry on the expend ledger. Ex. A medical clinic performed a service for $50. CashFees Revenue $50

6 Expense The second special account created in a expend ledger is Expense. An expense represents a decrease in equity resulting form the costs of producing the revenue. Also you have to remember expense is a debit account. Ex. A company pays 10,000 for advertising fee. Cash Advertising Expense $10,000

7 Drawing The third special account created in the expend ledger is Drawing. Drawing represents a decrease in equity resulting from the withdrawals of funds by the owner. Also, you have to remember that drawing is a debit entry Ex. The owner of the company takes $3000 out of his company used it his own purpose. CashDrawing $3000

8 Debit and Credit In The Expended Ledger The ledger is now expanded to include revenues, expenses, and drawing. Thus, the rules of debit and credit must now include these new items. The complete rules of debit and credit are as follows: TYPE OF ACCOUNT TO INCREASETO DECREASE CapitalCreditDebit RevenueCreditDebit ExpenseDebitCredit DrawingDebitCredit

9 Expanded Ledger Trial Balance E. Boa Trial Balance --date-- AccountDebitCredit Bank2439 A/RH. Geroux1420 A/RJ. Magill757 A/RE. Parsons1395 Supplies2316 Office Equipment7550 Automobile16800 A/POK Supply 4400 A/PSooter Store 1200 Bank Loan 940 E. Boa, Capital E. Boa, Drawings3950 Fees Revenue Advertising Expense1321 Car Expense2615 Rent Expense1300 Sundry Expense385 Wages Expense This is an example of trial balance with the new expanded ledger system. As you can see owners equity has been separated into Capital, revenue, expense and drawings.

10 Credit PowerPoint Designed By: David Lin Information Provided By: Barton Du, Andy Lin Please remember to go to the R drive to pick up this PowerPoint presentation, and study it within seven days, or bad things will happen to you! Thank You again for watching this presentation!!


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