Tag Archives: Double entry system

Ledgers is the third step in the Accounting Cycle. After you sort out Source Documents and record the amounts into the 7 Journals, the figures then go to the ledger accounts. Each account records details of every activity that happens in a business. From the day the owner invests money …

For every transaction made in a business, you must record a debit entry and a credit entry in the ledger accounts. This rule is called the double entry system. The debit entry goes on the left side of one T account and it must have the same amount as the …

Accounts are shaped like a T that has a left side called Debit or Dr and a right side called Credit or Cr. Debit means to have, increase, go up or come in and Credit means don’t have, decrease, go down or go out. A simple way to look at …