Concept explainers
(a)
Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these
Accounting rules for journal entries:
- To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
To prepare: Journal entries.
(b)
T-Account: T-Account is a form of ledger account in which the debit entries are shown at the left side of the account and credit entries are shown at the right side of the account.
To prepare: T-Accounts
(c)
Trial Balance: Trial balance is the record of accounts and their balances prepared at the end of accounting period. It is the prepared after journal and ledger and gives the summary of transactions occurred in the business. Debit balances are given in left column and credit balances are given in right column of trial balance.
To prepare: A trial balance.
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