Category: Journal Entry Examples

Q7. Balancing of a journal entry When does a journal entry balance? A7. A journal entry balances when the sum of debit amounts is same

Q6. Normal balances On which side do assets, liabilities, equity, revenues and expenses have normal balances? A6. Normal balance of an account refers to the

Q5. Credit accounts Which transactions are recorded on the credit side of a journal entry? A5. Assets + Expenses = Liabilities + Equity + Revenues

Q4. Debit accounts Which transactions are recorded on the debit side of a journal entry? A4. Assets + Expenses = Liabilities + Equity + Revenues

Q3. Accounting equation What are the components of the accounting equation? A3. (1) The accounting equation shows that total assets should be equal to total

Q2. Debits and credits What are debits and credits? A2. (1) Debit refers to the left side of the accounting equation. (2) Credit refers to