When cash is received, debit Cash. When cash is paid out, credit Cash. When revenues are earned, credit a revenue account. When expenses are incurred, debit an expense account.
Ledger account numbering example. 1000 ASSETS 2000 LIABILITIES 3000 OWNERS EQUITIES 4000 REVENUE 5000 COST OF GOODS SOLD 6000 – 7000 OPERATING EXPENSES Simple Example Chart of Accounts Asset Accounts 101 Bank/Cash at Bank[ 102 Cash 108 Deferred Expense 110 Other A52312 112 Accounts Receivable 116 Supplies 130 Prepaid Insurance 157 Equipment 158 Accumulated Depreciation Equipment... » read more
Liabilities include any type of debt that you owe in the form of credit cards, lines ofcredit, student loans, mortgages, and overdraft protection. … Credit cards do not increase your net worth because credit cards are not assets, they are liabilities.
A general ledger (GL) is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing each type of asset, liability, equity, revenue and expense. General Ledger Accounts The accounts that are used to sort and store transactions are found in the company’s general ledger.... » read more
There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories. Assets Account The assets account includes everything that your company owns. Assets are divided into tangible... » read more
Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology. ERP is usually referred to as a category of business management software — typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from these many businessactivities. ERP provides an integrated and... » read more