Social Sciences

Examples of How to keep a journal

The book journal is where business transactions are recorded in the order to be made.
1 * you write down the equity, that is, what the company started with; suppose furniture $ 300 placing the value in the box of MUST
2 * write down the initial debts (ex. loans) in the center with an A before putting the item and placing the value in the box of HAVE
3 * having this in a first seat remove the net worth, difference between debit and credit, the sum of c / column must have the same value (MUST = HAVE)

So you have to continue writing down everything that happens daily:

When an Asset account decreases ==> you record the decrease in the do
When an Asset account increases ==> you write it down in the Debt
______________________________________…

When an Expense
account increases ==> you write it down in the Debt When an Income account increases ==> you write it down in the Credit
______________________________________…

When an account decreases of Liabilities or Capital ==> you register the decrease in Debt
When an account of Liabilities or Capital increases ==> you write it down in Credit

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