Journal is the primary record of the business transactions in chronological (date wise) order. Journal entry contains two effects, one is debit and the other is credit, under the double entry book keeping system.
Procedure for debiting and crediting an account:
• Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.
• Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.
All transactions affect the
To prepare: The journal entry to record the issuance of capital stock.
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