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ledger examples with answers
Ledger examples with answers: There are two types of keeping a book (and consequently, two methods for making journal entries) two entry and single entry.
Consider double-entry bookkeeping like a GPS that shows both the beginning and direction. It will reveal where the money comes from and the direction it’s heading to.
Simple bookkeeping for single entries is easier. If you buy office equipment, write it down. If you create the sale, take note of it. You don’t have to mention the account that financed the purchase or note where the sale was paid.
The most commonly used method of bookkeeping in the present can be described as dual-entry. We’ll use double-entry examples to show how journal entries function.
If you’re completely new to double-entry accounting and you’re not sure of the distinction between credits and debits, then pause here. Take a look at the video guide for credit and debits. This guide will help you understand the basics you should know before proceeding with this article.