Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.
You should be aware that All Accounts:
- Can Be Debited and Credited
- Have an Increase Side and a Decrease Side
- Have a Debit Side and a Credit Side
- Debit Side is the Left Side (Left Column)
- Credit Side is the Right Side (Right Column)
- Have a Normal Balance Amount that is normally a Debit Balance or a Credit Balance
- Have a Type and are classified as an Asset, Liability, Equity, Revenue, Expense, or Draw
- Are Either a Balance Sheet or Income Statement Account
T Accounts:The simplest account structure is shaped like the letter T. The account title and account number appear above the T. Debits (abbreviated Dr.) always go on the left side of the T, and credits (abbreviated Cr.) always go on the right.
1. http://www.youtube.com/user/SusanCrosson Check accounting basics on this channel
We will learn more in second part.