Potters & Sculptors - Making Rock from Mud
Part 1 The main tutorials for the basic accounting portion of the class are at
Task 1 - Complete Lesson 3 (Debits and Credits), and take the 2 skills tests and the quiz that are linked at the bottom of the lesson.
Task 2 - Complete Lesson 4 (Recording Business Transactions). Start by taking the Basic Accounting Review Quiz near the top of the tutorial and then work through the tutorial. Finish by taking the Debit/Credit Skills Test III at the bottom of the lesson.
Task 3 - Complete Lesson 5 (The General Ledger and Journals), and take the Basic Bookkeeping-General Ledger and Journals quiz at the bottom of the lesson.
Task 4 - Complete Lesson 6 (Financial Statements), and take the Financial Statements quiz and the bottom of the lesson.
Lesson 7 is a review of all we have covered thus far. We will asses on Thursday, March 22, whether to include it this week or delay it, and have a full week of review next week.
No group exercises until group meets Sunday 3/25 to assess progress.
Lesson 3 Core Concept
Methods for Determining What To Debit and Credit.
While they all require some degree of memorization, some are less taxing on the brain cells than others.
(1) Memorize the definitions for debits and credits.
Debit - An entry (amount) entered on the left side (column) of a journal or general ledger account that increases an asset, draw or an expense or an entry that decreases a liability, owner's equity (capital) or revenue.
Credit - An entry (amount) entered on the right side (column) of a journal or general ledger account that increases a liability, owner's equity (capital) or revenue, or an entry that decreases an asset, draw, or an expense.
This is actually no different than memorizing the other terms that were presented in Lesson 1.
(2) Convert the Definitions To Detail Debit and Credit Rules and Memorize The Rules
At least I've supplied a Table and a T-Account presentation of the Accounts to help in this endeavor.
Our Summarized Debit and Credit Rules Table
|Account Type||Debit||Credit||Normal Account Balance|
A debit increases an asset while a credit decreases an asset.
A debit decreases a liability while a credit increases a liability.
A debit decreases owner's equity while a credit increases owner's equity.
A debit decreases revenue while a credit increases revenue.
A debit increases an expense while a credit decreases an expense.
A debit increases a draw while a credit decreases a draw.
Dr ^ ADE Cr v ADE
Dr v LOR Cr ^ LOR
For today's chat session lets try http://zippychat.com/room/26817
When you arrive there type in your name and you will be identified by name from then on by name. Open the chat session in a new browser window, so you can see it and the group's Week two page at the same time. If you have a wide screen monitor you might arrange the browser windows side by side. With an old style screen you might go with the windows full width above and below.
Bean Counter's Accounting and Bookkeeping "Cheat Sheet" page is a condensed guide to pretty much everything we need to know. You might want to print it out and laminate it or put it in plastic sleeves for everyday use. http://www.dwmbeancounter.com/tutorial/DrCrTChart.html