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Discussion Topics Topic 1 (a) Define the term “Debit” and the term “Credit” (b) What categories/classes...

Discussion Topics

  • Topic 1

(a) Define the term “Debit” and the term “Credit”

(b) What categories/classes of accounts increase on the Debit?

(c) What categories of accounts decrease on the Debit.

(d) In a double-entry system, if an account is Debited, what must be the second account ?

(e) What is the purpose of footing an account?

  • Topic 2

(a) What is a trial balance?

(b) The accounts in the trial balance are listed in what order?

(c) What is the income statement? What types of accounts go into it?

(d) Define the General Journal

(e) Define the general ledger. What is posting?

Business   Accounting   
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Homework Answers

Answer #1

Answer:

1) In simple words, debit is an entry which raises an asset or lowers a liability

and credit is an entry which can raise a liability or lowers the asset.

2) Categories of asset class & expense class increase on the debit

3) Categories of Liabilitiy class & Equity & revenues decrease on the debit.

4) In a double-entry system, if an account is Debited, the second account must be credited.

5) Footing is done by adding all the debits and and adding all the Credits and tallying them accordingly and they are are netted off to arrive at the correct balance of a particular account.

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