Dita Fitrotul L, Desty Ayu N

CLASSIFICATION OFACCOUNT
 Classification of account divided into :

ASSETS LIABILITY CAPITAL EXPENSE REVENUE

RULES OF
DEBIT AND
CREDIT
NORMAL BALANCE
OF ACCOUNT
helps understand the rules of
debit and credit easily.
 RULES OF DEBIT AND CREDIT
01 CASH 5 CAPITAL
NORMAL BALANCE OF ACCOUNT ; DEBIT NORMAL BALANCE OF ACCOUNT ; CREDIT

02 EX P E NS E
NORMAL BALANCE OF ACCOUNT ; DE B IT
03 LIABILITY
NORMAL BALANCE OF ACCOUNT ; CREDIT

04 REVENUE
NORMAL BALANCE OF ACCOUNT ; CREDIT
EXAMPLE

1. Started business with cash $95,000

2. Purchased furniture for cash $8,000.

NO ACCOUNT NATURE OF INCREASE / DEBIT CREDIT

INVOLVED ACCOUNT DECREASE

1 CASH ASSET INCREASE $ 95,000

CAPITAL EQUITY INCREASE $ 95,000

2 FURNITURE ASSET INCREASE $ 8,000

CASH ASSET DECREASE $ 8,000
 EXERCISE
1. Purchased goods for cash $40,000.
2. Purchased goods on credit from Big
Traders $57,000.
3. Sold goods for cash $5,000.
4. Purchased equipment for business
$4,000.
5. Sold goods on credit to John
Retailers $15,000.
6. Paid salary to employees $1,200
 SOLUTION
NO ACCOUNT NATURE OF INCREASE / DEBIT CREDIT
INVOLVED ACCOUNT DECREASE