Accounting Education

Steps you must follow when recording credit transactions:

1. Prepare day books; sales, purchases, returns and journal proper.
2. Prepare two accounts
3. Identify the "giving account" and the "receiving account"( apply principle of double entry):
Credit Giver
Debit Receiver

Marine Corps paid off $3000 of its account payable. What is the effect on its liabilities?

A. Increased by $3000
B. Decreased by $3000
C. No change

Capules corporation buys a machinery for $70000. What is the journal entry?

A. Debit machinery: Credit Cash
B. Credit machinery: Debit cash
C. Debit cash: Credit machinery