Bookkeeping – Parent–Child Accounts (Lesson 17)
When one account is fed information from several sources based on function or location, this account is referred to as a ‘Parent’ account. The sub accounts are called ‘Child’ accounts.
Debits
With bookkeeping, debits are values customarily found with assets, cost of sales and expenses. ‘Debits’ is a bookkeeping term and is used in conjunction with credits.
Bookkeeping – Debits and Credits with the Trial Balance (Lesson 16)
The primary report used by accountants is the trial balance. It is the job of the bookkeeper to make sure that it is in balance and that there are no abnormal values within the respective types of accounts. This lesson sums up the prior 15 lessons and illustrates the trial balance with a condensed version and an expanded version.
Bookkeeping – Complex Entries (Lesson 15)
Many bookkeepers are initially misinformed about the dual entry accounting system. They think that based on the wording that accounting entries have only two lines of information, one line for a debit and a second line for a credit. What the words dual entry mean is that debits must equal credits.
Bookkeeping – Debits and Credits in Parenthesis with the Profit and Loss Statement (Lesson 14)
Both contra and atypical values are reported with parenthesis. The same presentation format is used when reporting contra and atypical values on the profit and loss statement (income statement).