knowverseQuestion 1
Where is a debit recorded in a T-account?
A debit is a left-side entry.
Source excerpt
In the world of accounting, we give a specific name to the left side of this 'T' shape: it is called a debit.
From the Knowverse course text.
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Two sides of an account
Double-entry bookkeeping records a transaction through debits and credits whose totals are equal. In a T-account, debits go on the left and credits on the right. Neither word means good or bad. Their effect depends on the account: debits increase ordinary asset accounts, while credits increase ordinary liability and equity accounts.
The normal balance is the side used to record an increase. Cash and equipment normally have debit balances. Liabilities and owner's equity normally have credit balances. Buying equipment with cash increases one asset and decreases another: equipment is debited and cash credited. Several accounts can appear in a single balanced entry.
Source excerpt
The normal balance is simply the side of the account where an increase is recorded.
From the Knowverse course text.
From transactions to checks
A journal records transactions in date order, with the affected accounts and amounts. Posting transfers those entries to the individual ledger accounts. The chart of accounts lists account names and identifiers, while the ledger holds their entries and balances. These records organize the same business activity for different purposes.
A trial balance lists account balances and compares the debit and credit totals. Equal totals provide an arithmetic check, rather than proof that everything is correct. A transaction omitted entirely can leave the totals equal. So can a duplicated balanced entry or an amount posted to the wrong account on the correct side.
Source excerpt
A Trial Balance is simply a list of all accounts and their balances at a specific point in time.
From the Knowverse course text.