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Journal Entry- Credits and Debits

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Journal Entry- Credits and Debits [#permalink] New post 14 Sep 2010, 08:12
In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?

Last edited by Barium on 20 Sep 2010, 09:50, edited 1 time in total.
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Re: Jornal Entry- Credits and Debits [#permalink] New post 14 Sep 2010, 15:42
Debit are on the left-side, credits on the right (of a t-account).

Assets go up on the left, down on the right.

Liabilities go down on the left, up on the right.

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Re: Jornal Entry- Credits and Debits [#permalink] New post 15 Sep 2010, 06:16
Barium wrote:
In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?


Debit & credit are the foundation of a double entry system. Actually debit credit terminologies are not important. Its the double entry system that needs attention.

Check these links out

http://www.accountancy.com.pk/forum/top ... IC_ID=2056

http://www.futureaccountant.com/account ... credit.php
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Re: Jornal Entry- Credits and Debits [#permalink] New post 15 Sep 2010, 07:34
Watch out for contra assets like allowance for AR and accumulated depreciation.
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Re: Journal Entry- Credits and Debits [#permalink] New post 20 Sep 2010, 09:54
Hussain15 wrote:
Barium wrote:
In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?


Debit & credit are the foundation of a double entry system. Actually debit credit terminologies are not important. Its the double entry system that needs attention.

Check these links out

http://www.accountancy.com.pk/forum/top ... IC_ID=2056

http://www.futureaccountant.com/account ... credit.php



Thanks- those links help. I'm slowly starting to grasp it but its good to know that the terminology for credits/debits for non accountants is the opposite of those in the field. Just need to make the minor adjustment but pretty much Debit= Left and Credit =Right and what it does to journal entry after that point depends on its classification (asset, liability, equity, revenue, etc.)
Re: Journal Entry- Credits and Debits   [#permalink] 20 Sep 2010, 09:54
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