Description

What is Debit and Credit in Accounting? Learn here with thefullyunlocked version of Accounting Play - Debits & Credits.Get allT-Accounts, unlimited time, and unlimited play. Students:crushyour accounting exams Bookkeepers: learn how to directlyadjust thegeneral ledger Entrepreneurs: understand your books Checkout thestudy section and subscribe for great free resources,including avideo course with printouts to help you practice.Accounting PlayPaid teaches the accounting equation with an iPhone& iPadgame. Use Debit and Credit coins to learn, study, basicaccountingand training. Play against the world as you learn. Studymaterialsto learn the equation, debits & credits, journalentries, andaccounting theory is included for free. Whether you arestudyingfor the CPA exam or taking your first accounting course,AccountingPlay will help you learn in a fast and fun way. Moreat:http://www.AccountingPlay.com Debits and credits formthefoundation of the accounting system. The mechanics of thesystemcan be tough to get a first, but the game makes it mucheasier!Once understood, you will be able to properly classify andentertransactions. These entries makeup the data used topreparefinancial statements such as the balance sheet andincomestatement. Every accounting transaction involves at least onedebitand one credit. The sum of debits and the sum of credits foreachtransaction and the total of all transactions are always equal.Alist of all transactions appears in the general ledger. Debitsarealways presented before credits. The double entrysystemcategorizes transactions using five account types:Assets,liabilities, equity, income, and expense. The same accountmay alsobe used in a two-part transaction if there is an increaseand adecrease of the same category. Assets, liabilities, and equitymakeup the balance sheet and form the equation: A = L + E. Revenueandexpenses make up the income statement and can generallybeexpressed as Revenue – Expenses = Income or Loss. To helpvisuallyrepresent debit and credit entries, a T-account may beused. Thisis visually represented in Accounting Game – Debits andCredits asa big green T. The left side of the T-account is a debitand theright side is a credit. Actual debit and credit transactionswillbe recorded in the general ledger, which accumulates all ofthetransactions, by account. T-accounts help both studentsandprofessionals understand accounting adjustments, which arethenmade with journal entries. Journal entries are the mechanism ofhowaccounting transactions are entered. Every journal entry hasdebitswhich = credits. Because accounting software replaces theneed forjournal entries to record transactions as they happen,adjustingjournal entries are commonplace to adjust the accountingrecord.Each transaction in accounting software has a debit andcreditside, but the user can be unaware of this as the transactionismade most often in a graphically friendly way, such as enteringacheck in a register and assigning it an account. Adjustingjournalentries are generally made to correct mistakes and makenon-cashadjustments, such as depreciation. Debits and Credits Gameisdesigned to challenge and teach common accounting transactions inavisually entertaining and engaging way.