ACCOUNTS WHERE SIMILAR TRANSACTIONS ARE GROUPED

ASSETS CASH MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES (SUPPLIES) EQUIPMENT BUILDING LAND

EXPENSES RENT EXPENSE SALARY EXPENSE COST OF GOODS SOLD EXPENSE ETC. EXPENSE

DEBITS AND CREDITS FOR EVERY DEBIT THERE IS A CREDIT Debits on Left Credits on Right

ASSETS AND EXPENSES TO INCREASE AN ASSET OR EXPENSE IT IS DEBITED TO DECREASE AN ASSET OR EXPENSE IT IS CREDITED Assets & Expenses (+) Increase Account(-) Decrease Account

LET’S MAKE SOME JOURNAL ENTRIES BUY SOME INVENTORY FOR $500. THE INVENTORY IS INCREASED (DEBITED), THE CASH IS DECREASED (CREDITED) DEBIT CREDIT INVENTORY $500 CASH $500

RENT EXPENSE IS PAID DEBIT CREDIT RENT EXPENSE $300 CASH $300

SUPPLIES ARE PURCHASED DEBIT CREDIT SUPPLIES $100 CASH $100

MAKE THE JOURNAL ENTRY RENT EXPENSE OF $700 IS PAID IN CASH

DEBIT CREDIT RENT EXPENSE $700 CASH $700

MAKE THE JOURNAL ENTRY INVENTORY IS PURCHASED FOR $900

DEBIT CREDIT INVENTORY $900 CASH $900

MEMORIZATION MEMORIZE THE DIFFERENT TYPES OF ASSETS MEMORIZE THE COMMON EXPENSES