Double-Entry Bookkeeping
Definition: Every transaction: equal debits and credits
Scope:Very BroadDifficulty:Very Easy
Every transaction: equal debits and credits
Interactive Journal Entries
| Date | Account | Debit | Credit |
|---|---|---|---|
| CashAsset+ | |||
| Owner's CapitalEquity+ | |||
| Office SuppliesAsset+ | |||
| Accounts PayableLiability+ | |||
| CashAsset+ | |||
| Service RevenueRevenue+ | |||
| Rent ExpenseExpense+ | |||
| CashAsset− | |||
| EquipmentAsset+ | |||
| CashAsset− | |||
| Notes PayableLiability+ | |||
| Salary ExpenseExpense+ | |||
| Salaries PayableLiability+ | |||
| Totals | $80,300 | $80,300 | |
Every transaction keeps the accounting equation in balance: Total Debits = Total Credits
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$50,000.00
Jan 5, 2025
$8,500.00
Jan 15, 2025
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$2,000.00
Jan 20, 2025
$5,000.00
Jan 25, 2025
$51,500.00
Owner's CapitalOwner's CapitalEquityThe owner’s residual interest in the business. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$50,000.00
Jan 5, 2025
Normal bal. ▶
$50,000.00
Office SuppliesOffice SuppliesAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,200.00
Jan 10, 2025
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
Accounts PayableAccounts PayableLiabilityAn obligation the business owes to others. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
Jan 10, 2025
Normal bal. ▶
$1,200.00
Service RevenueService RevenueRevenueIncome earned from business operations. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$8,500.00
Jan 15, 2025
Normal bal. ▶
$8,500.00
Rent ExpenseRent ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$2,000.00
Jan 20, 2025
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$2,000.00
EquipmentEquipmentAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$15,000.00
Jan 25, 2025
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$15,000.00
Notes PayableNotes PayableLiabilityAn obligation the business owes to others. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$10,000.00
Jan 25, 2025
Normal bal. ▶
$10,000.00
Salary ExpenseSalary ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$3,600.00
Jan 31, 2025
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$3,600.00
Salaries PayableSalaries PayableLiabilityAn obligation the business owes to others. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$3,600.00
Jan 31, 2025
Normal bal. ▶
$3,600.00
DurationN/A
Related Subjects
Used In
See Also
External Links
- Double-entry bookkeeping — Wikipedia