Social Sciences

Examples of accounting entries

It is called an accounting entry or accounting entry to each of the entries or records that are made in an accounting book, which are made in accounting in order to record an economic fact that causes a change in the equity of a company and therefore a movement in the accounts of a company or individual. In the double entry system, each entry has two aspects: debits and credits. These two positions make inverse movements, and affect assets or liabilities, and are based on the fact that every point affects at least two accounts and each movement has a counterpart.

For example: there has been an increase of money in the bank of 100. This supposes a part of the entry increases cash in 100. On the other hand, we must know where that money comes from. It can be for several reasons:

* Sale of another asset: In that case we reduce the value of that asset.
* Loan: Here you would have to register a liability (obligation), with the value of the loan.
* Profit: As in the case of liabilities, we register the profit, which in this case would be in equity or non-callable liability.

There are 2 types of entries :

Simple Entry: Composed of a creditor account and a debtor account.

Composite Entry \ “:

* Composed of a debtor account and several creditors.
* Composed of several debtor accounts and a creditor.
* Composed of several debit accounts and several creditor accounts. Complex seats

may also appear . In that case, the cash increase comes from several places at once: for example, the 100 cash comes from an asset that was worth 80, and for which 20 profit was obtained on the sale

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