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Owner’s Owner’s
Assets = Liabilities + -
Capital Drawings
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
+ - - + - + + -
+ Revenues - Expenses
Title of Account
Left or debit side Right or credit side
Cash
15,000
Cash
7,000
Cash
15,000 7,000
8,000
Assets
Increase Decrease
Debit Credit
Normal
Balance
Liabilities
Decrease Increase
Debit Credit
Normal
Balance
ILLUSTRATION 2-4
NORMAL BALANCE — OWNER’S CAPITAL
Owner’s Capital
Decrease Increase
Debit Credit
Normal
Balance
Owner’s Drawings
Increase Decrease
Debit Credit
Normal
Balance
Expenses
Increase Decrease
Debit Credit
Normal
Balance
ILLUSTRATION 2-9
THE RECORDING PROCESS
JOURNAL
LEDGER
JOURNAL
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Sept. 1 Cash 15,000
M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000
Cash 7,000
Purchased equipment for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Oct. 2 Delivery Equipment 14,000
Cash 14,000
Purchased truck for cash.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Oct. 2 Delivery Equipment 34,000
1 Cash 8,000
Note Payable 26,000
2 Purchased truck for cash
and note payable.
3 Dr. Emon Kalyan Chowdhury, Assistant Professor of
Accounting, CIU
COMPOUND JOURNAL ENTRY
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit
2002
Oct. 2 Cash 8,000
Delivery Equipment 34,000
Note Payable 26,000
Purchased truck for cash
and note payable.
GENERAL
LEDGER