회계 기본 영어 accounting, Bookeeping, Double Entry

Double entry is a system of Debit and Credit entries to describe the dual effect of a transaction. Every double entry must balance, with equal values on the Debit and Credit sides.

 

Natural Characteristics of Double Entry

• Asset is a Debit type (DR)
• Liability is a Credit type (CR)
• Owner’s Equity is a Credit type(CR)
• Revenue is a Credit type(CR)
• Expense is a Debit type (DR)

i.e. Asset account will increase, the account will be debited.
     Liability account will increase, the account will be credited.

* Debit is written to the left, credit on the right.
* if ‘negative Asset/Expense’ account will increase, the account will be credited. (네거티브인 경우에는 원래랑 반대)

Expanded Accounting Equation

Asset + Expense = Liability + Owner’s Equity + Revenue

Principle of Duality

Debits = Dredits

Every Transaction

• At least one debit
• At least one credit
• Dollar amount for all crdit and debit are equal

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.


회계 기본 영어 financial Elements 회계 거래 회계 기초 accounting English, financial elements

회계 기본 영어 financial Elements 회계 거래 회계 기초 accounting English, financial elements