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: The closing entries as on April 30, 2017
(b)
T-account: It is the account or graphical representation of general ledger account or its entries. The left side of T-account is debit side and the right side represents as credit side. The journal entries prepared and posted to T-accounts. In the T-account of assets, the journal entries which increase the balance of asset are debited in the T-account.
To prepare: T-Accounts of Income summary and retained Earnings
(c)
Post-Closing
To prepare: Post closing trial Balance.
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Chapter 4 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
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