16 Oct
I read the re edited post and understand your explanation about
the debit and credit balances which is linked to profit or losses?
am I right?
So far I seem to understand.
the 1.1 exemplification.
What's a T account? Is that double entry?
I have a question,
quote:
Example. Let's start with assets. Let's say cash.
1 Oct - I put invested $50K cash,
2 Oct - I use $25K to purchase a van.
What you should see is in a T-account format is
Cash
Account
Debit
Credit
1 Oct - Owner's equity $50,000
2
Oct - Motor Vehicles Account $50,000
wouldn't the purchase of van entry be
$25k credited under the cash account instead of $50k? Am I
missing something?
I just need to read it about 10 times for it to really marinate
and start making sense in my head.
Thanks.
on the side: shall I read up on my textbook.
hi sorry didn't know you edited your post.. yes T-account is
like a format for writing double entries..
