会计英语LESSON5.ppt

Accounting English LESSON 5 LEDGER ACCOUNTS PREVIEW ON TEXT What are the five major categories of ledger accounts: Assets, liabilities, owners’ equity, revenues and expenses. What is chart of accounts? It is a listing of the titles and numbers of all accounts found in the general ledger. Can you explain the double-entry system? NEW WORDS, PHRASES AND SPECIAL TERMS Ledger: A ledger (general ledger) is the complete collection of all the accounts of a company. Account: An account is an element in an accounting system that is used to classify and summarize measurements of business activity. Debit--- left side. Credit--- right side. NEW WORDS, PHRASES AND SPECIAL TERMS Normal balance Since asset, expense, and drawing accounts are increased by debits, they normally have debit (or left side) balances. Conversely, liability, owners’ equity, and revenue accounts are increased by credits and normally have credit (or right side) balance. Journal: A journal is a chronological (arranged in order of time) record of business transactions. A transaction is initially recorded in a journal rather than directly in the ledger, a journal is called the book of original entry. TEXT FROM NOW ON DEBIT AND CREDIT DEBIT AND CREDIT DEBIT AND CREDIT DEBIT AND CREDIT DEBIT AND CREDIT Basic Accounting Equation Relationship among the assets, liabilities and stockholders’ equity of a business: Double entry system exercises READING MATERIAL STEPS IN THEN ACCOUNTING CYCLE An Account shows the effect of transactions on a given asset, liability, equity, revenue, or expense account. Double-entry accounting system (two-sided effect). Recording done by debiting at least one account and crediting another. DEBITS must equal CREDITS. An arrangement that shows the effect of transactions on an account. Debit = “Left” Credit = “Right” Account An Account can be illustrated in a T-Account form. Account Name Debit / Dr. Credit / Cr. If Debit entries are greater than Credit entries, the account will h