Accounting & Bookkeeping & Small Business Forum

[Xepa]

HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I'm an accounting noob, and our teacher is KILLING us
with these transaction types.

There are sooo many transaction types; is there one
MASTER DIAGRAM of all the T-accounts and how it
would fit under the accounting equation? Like under
assets, it would have "Inventory" and a t-account with
debit on the left side and credit on the right side, with
credit being the positive marker?

THis would help me visualize and understand the transactions
SOOO much better. I remember having this in high school
but in college there is no textbook with these types of visuals.

If anyone could help I'll bless them with great bubbly joy
and amazing warmth!

[stasia2003]

Xepa wrote: HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I'm an accounting noob, and our teacher is KILLING us
with these transaction types.

There are sooo many transaction types; is there one
MASTER DIAGRAM of all the T-accounts and how it
would fit under the accounting equation? Like under
assets, it would have "Inventory" and a t-account with
debit on the left side and credit on the right side, with
credit being the positive marker?

THis would help me visualize and understand the transactions
SOOO much better. I remember having this in high school
but in college there is no textbook with these types of visuals.

If anyone could help I'll bless them with great bubbly joy
and amazing warmth!


Just memorize this:

All assets have normal debit balances which means they increase(+) on the left side of the T-account. The only asset account that increases on the right is the Accumulated Depreciation account.

All liabilities have a normal credit balance which means they increase(+) on the right side of the T-account.

But, the equity accounts can get a bit tricky. Your capital accounts have normal credit balances which means they increase on the right side of the T-account, BUT your Owner's Drawing(equity) account increases on the left side.

[Xepa]

I remember from high school though that revenues have like...both categorized within it. Yah, this college course i'm taking right now has
the highest failout rate in our school (47%) so I'm really paranoid
as I couldn't even get an A in a HS accounting class hahaha.

And there's lots of funky stuff which throw me off on where to place
it, like prepaid insurance, deferred revenue, interest income, etc. I
can barely distinguish the difference between office equipment and
inventory, let alone all that stuff hahaha. I would link you guys to a
diagram that I drew and hosted on imageshack, but I need 5 posts
before I can do that, and i'm in freakout mode right now which is why
I'm registering.

Sorry for rambling :(

[sgbdad23]

The trick tat has always helped me was to remember how each account would affect cash.

Sales you bring money in... Debit cash Credit Sales

Pay a loan, Credsit Cash , Debit Loan Payable

Just follow the cash.

[stasia2003]

sgbdad23 wrote: The trick tat has always helped me was to remember how each account would affect cash.

Sales you bring money in... Debit cash Credit Sales

Pay a loan, Credsit Cash , Debit Loan Payable

Just follow the cash.

Well this doesn't always apply when it comes to accruals and deferrals.

[cdiii3]

Asset = Liabilities + Owners Equity

Debit.......Credit............Credit................Increase

Credit......Debit..............Debit................Decrease

[Dominic Bradish]

Taking a broad view of the accounting equation, I view assets as the store of resources that an entity controls and the liabilities + owners equity as an explanation of who owns them. Liabilities show how much of the assets are funded by creditors while owners equity show how much of them are either funded by owner contributions or retained earnings.