Question

INCREASE/DECREASES EFFECTS OF JOURNAL ENTRIES ON ACCOUNTS WHEN ENTERING COMMON TRANSACTIONS – ENTERING BILLS, PAYING BILLS, CREATING INVOICES, RECEIVING PAYMENTS, MAKING DEPOSITS

Answer 1

		Debit	effect increase / decrease	credit	effect increase / decrease
1-	Entering bills	expense	Increase expense	accounts payable	increase liabilities
2-	Paying bills	accounts payable	decreases Liabilities	cash	decreases assets
3-	creating invoices	accounts receivables	increases Assets	sales revenue	increase revenue
4-	receiving payment	cash	increases Assets	accounts receivables	decreases assets
5-	making deposits	bank	increases bank account	decreases cash	decreases assets