NEW HERE? LEARN MORE
closeclose
Last visit was: 23 Apr 2024, 20:59 It is currently 23 Apr 2024, 20:59
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

Journal Entry- Credits and Debits

SORT BY:
Date
Kudos
avatar
Barium
Intern
Intern
Joined: 25 Feb 2010
Posts: 14
Own Kudos [?]: [0]
Given Kudos: 0
Send PM
Journal Entry- Credits and Debits [#permalink] New post   Updated on: 20 Sep 2010, 10:50
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?

Originally posted by Barium on 14 Sep 2010, 09:12.
Last edited by Barium on 20 Sep 2010, 10:50, edited 1 time in total.
User avatar
refurb
Current Student
Joined: 28 Feb 2008
Posts: 1321
Own Kudos [?]: 156 [0]
Given Kudos: 6
Schools:Tuck
Send PM
Re: Jornal Entry- Credits and Debits [#permalink] New post   14 Sep 2010, 16:42
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.

RF
User avatar
Hussain15
Retired Moderator
Joined: 18 Jun 2009
Status:The last round
Posts: 1078
Own Kudos [?]: 3046 [0]
Given Kudos: 157
Concentration: Strategy, General Management
Schools: Stanford '14 (D) Booth '14 (D) Johnson '14 (D)
GMAT 1: 680 Q48 V34
Send PM
GMAT ToolKit User
Re: Jornal Entry- Credits and Debits [#permalink] New post   15 Sep 2010, 07:16
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

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

https://www.futureaccountant.com/account ... credit.php
User avatar
Dawgie
Senior Manager
Senior Manager
Joined: 13 Aug 2009
Posts: 492
Own Kudos [?]: 84 [0]
Given Kudos: 46
Send PM
Re: Jornal Entry- Credits and Debits [#permalink] New post   15 Sep 2010, 08:34
Watch out for contra assets like allowance for AR and accumulated depreciation.
avatar
Barium
Intern
Intern
Joined: 25 Feb 2010
Posts: 14
Own Kudos [?]: [0]
Given Kudos: 0
Send PM
Re: Journal Entry- Credits and Debits [#permalink] New post   20 Sep 2010, 10:54
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

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

https://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.)
GMAT Club Bot
gmatclubot
Re: Journal Entry- Credits and Debits [#permalink]
20 Sep 2010, 10:54

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions