chapter 3 1+2

Question 1

what is the left hand side of the ledger account

Answer 1

the debit side (Dr)

Question 2

what is the right side of the ledger account

Answer 2

the credit side (Cr)

Question 3

what is the rule for making entries in the ledger account

Answer 3

every debut entry must have an equal and opposite credit entry

Question 5

what causes debuts to increase
(DEAD)

Answer 5

Debits increase:
Expenses
Assets
Drawings

Question 6

what causes credits to increase
(CLIC

Answer 6

Credits increase:
Liabilities
Income
Capita

Question 7

what does a debit entry represent

Answer 7

an increase to an item of expenditure

an increase in the value of an asset

a decrease in the value of a liability

a decrease to an item of income

Question 8

what does a credit entry represent

Answer 8

an increase in the value of a liability

an increase to an item of income (revenue)

a decrease to an item of expense

a decrease in the value of an asset