1. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The Chart of Accounts chart of accounts A list of all accounts used by a business. Accounts and the Double- Entry Accounting System Section 4.1 Home

2. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The Chart of Accounts ledger A group of accounts; also referred to as a general ledger. Accounts and the Double- Entry Accounting System Section 4.1 A system for numbering accounts makes it easy to locate individual accounts in the ledger. Home

3. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The Chart of Accounts Accounts and the Double- Entry Accounting System Section 4.1 A typical numbering system Asset accounts begin with 1. Liability accounts begin with 2. Owner’s equity accounts begin with 3. Revenue accounts begin with 4. Expense accounts begin with 5. See page 82 Home

4. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Double-Entry Accounting Accounts and the Double- Entry Accounting System Section 4.1 The double-entry accounting system recognizes both the debit and credit side of a business transaction. double-entry accounting A system used to analyze and record a transaction. debit An entry on the left side of an account. credit An entry on the right side of an account. Home

5. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Double-Entry Accounting Accounts and the Double- Entry Accounting System Section 4.1 The T account gets its name from being shaped like a T. T-account A visual representation of a ledger account. The T account is a tool used to analyze transactions. Home

6. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Left Side/Debit (DR) Assets = Right Side/Credit (CR) Liabilities + O. Equity Glencoe Accounting AssetsLiab. & O. Equity Debit + Normal Balance Debit - Credit - Credit + Normal Balance

7. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Double-Entry Accounting Accounts and the Double- Entry Accounting System Section 4.1 normal balance The increase side of an account. The word normal here means usual. Home

8. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Applying the Rules of Debit and Credit Section 4.2 Business Transaction Analysis When analyzing business transactions, you should Apply the rules of debit and credit. Complete the entry in T-account form. Home

9. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Practice Glencoe Accounting Discuss Problem 4-1 page 85 & Board Review