Journal Entries : Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order. Accounting Rules Regarding Journal Entries: Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited. Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited General Ledger: The general ledger records all accounts relevant to depict its assets, liabilities, and equities along with the incomes, expenses, and losses etc in a summarized form. It includes the debit and credit values of all the accounts, of which both, the total of all debit values and credit values should equalize. All the accounts are allotted a unique identifying numbers of the account to be more record friendly for its end users in later stages of preparation of financial statements. To prepare: Journal entries and post them in T-accounts as general ledger.

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Chapter 2, Problem 9E

To determine

Journal Entries:

Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order.

Accounting Rules Regarding Journal Entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited

General Ledger:

The general ledger records all accounts relevant to depict its assets, liabilities, and equities along with the incomes, expenses, and losses etc in a summarized form. It includes the debit and credit values of all the accounts, of which both, the total of all debit values and credit values should equalize. All the accounts are allotted a unique identifying numbers of the account to be more record friendly for its end users in later stages of preparation of financial statements.

To prepare: Journal entries and post them in T-accounts as general ledger.

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