Double Entry Bookkeeping
All accounting transactions are made up of 2 entries in the accounts: a debit and a credit.
For example, if you purchased a book, your value of books would increase, but your value of cash would decrease by the same value, at the same time. This is double entry bookkeeping.
Ledger Accounts
A ledger account is an item in either the Profit & Loss account (which we’ll discuss shortly) or the balance sheet. A Ledger account is either a:
Asset
Liability
Equity
Income
Expense
The example of purchasing a book, mentioned above, can be shown in the form of
ledger “T” accounts as follows:
Double Entry BookkeepingAll accounting transactions are made up of 2 entries in the accounts: a debit and a credit.For example, if you purchased a book, your value of books would increase, but your value of cash would decrease by the same value, at the same time. This is double entry bookkeeping.Ledger AccountsA ledger account is an item in either the Profit & Loss account (which we’ll discuss shortly) or the balance sheet. A Ledger account is either a:Asset Liability Equity Income ExpenseThe example of purchasing a book, mentioned above, can be shown in the form ofledger “T” accounts as follows:
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