Description
This course continues our exploration into the bookkeeping function. We introduce the concepts of single-entry and double entry bookkeeping as well as the accounting equation. This allows us to delve into examining the concepts of how to utilize debits and credits within financial accounting including assets, liabilities, equity, revenue and expense. It is imperative that a bookkeeper have a strong grasp on the utilization of debits and credits.
“A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.”
“A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.”
Following is a summary of how debits and credits impact the financial statement accounts
|
Category |
Increase Acct |
Decrease Acct |
|
Assets |
Debit |
Credit |
|
Liabilities |
Credit |
Debit |
|
Equity |
Credit |
Debit |
|
Revenue |
Credit |
Debit |
|
Expense |
Debit |
Credit |
This session utilizes multiple examples of how to apply debits and credits within various transactions and entries and provides the participant with a foundation of the concept of how to utilize the double entry bookkeeping system.
In addition, we examine a few of the many functions the bookkeeper can be involved with as part of their overall responsibilities.
NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper.
Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.
