how to make journal entries in accounting for beginners in bengali, how to record journal entries
journal entry and golden rules and _ how to make journal entry_ debit and credit
journal entries in accounting, Golden rules, how to make journal entry, debit and credit
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Step 1: Identify the accounts that will be affected
Before you can write and post a journal entry, you’ll need to determine which accounts in your general ledger will be affected by your journal entry. In this example, your office supplies account and your cash account are the accounts that will be affected.
Tips for identifying the right accounts:
• Sort your transactions first: If you have bank deposits, expenses, and sales entries to make, sorting them by transaction type will make it much easier to record your journal entries.
• Use common sense when identifying the correct accounts: This process may be confusing at first, but as you process more journal entries, you’ll begin to understand which accounts you should use for your transactions.
Step 2: Determine your account type
If you spent $150 at the store, you’ll be creating an expense for your office supplies account while reducing the amount of cash in your bank account. You’ll need to apply standard accounting rules to each account.
To increase an expense account, you would need to debit the account, and to decrease your cash account, which is an asset, you would need to credit the account.
Tips for identifying the account type:
• Remember your account types: Account types include Assets, Liabilities, Expense, Revenue, and Capital/Owner Equity accounts. All journal entries in accounting have to fall into one of these categories. For instance, the office supplies account is an expense, while the cash account is an asset.
• Use standard accounting rules to determine which account is debited and which account is credited: When recording the above transaction in the office supplies example, you will be increasing your expenses because you purchased office supplies, which is an expense account, while decreasing your assets because you used your cash account, which is an asset, to purchase those supplies.
Step 3: Prepare your journal entry
You’ve identified the accounts that will be involved in your journal entry, as well as the type of accounts they are. Now you’re ready to prepare your journal entry.
Tips for preparing a journal entry:
• Enter the correct date: The first step is to date your journal entry. This is to ensure it’s posted in the correct period.
• Write out the account name and number: When preparing a journal entry, always include the G/L account number as well as the account name.
• Enter the debit and credit amount: Using the above example, you will be debiting (increasing) your office supplies account, which is an expense account, and crediting (reducing) your cash account, which is an asset account.
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