John purchases supplies for $500 cash. The supplies account will be
John purchases merchandise for $5,000 on account. The
account will be credited.
Merchandise are sold to a customer on account. The sales account will be
$4,800 cash is paid to a creditor and a cash discount of $200 is received from him. The accounts payable will be debited by
$800 cash is paid to a worker as his monthly salary. The account to be debited is
Supplies costing $100 are used during the month.
account will be debited and supplies account will be credited.
Accounts in which transactions relating to individuals or organizations are recorded are known as
account is debited when owner of the business withdraws cash or an other asset for his personal use.
Classification of accounts as real, nominal and personal accounts is known as
Classification of accounts as assets, liabilities, capital, revenues, and expenses is known as
accounts are temporary accounts and are closed at the end of the accounting period.
A process that involves finding the names and nature of accounts in a transaction and applying the rules of debit and credit on those accounts is known as
When revenue/income is earned, its account is
are also known as balance sheet accounts.
When an expense is incurred. Its account is
An increase in liability is
An increase in asset is
A decrease in liability is
A decrease in asset is
Under double entry system of book-keeping, every transaction has
Every debit has a