4 – Examples
Since there are a variety of accounts, looking at several examples of journal entries can be helpful to see which accounts you debit and which you credit. Generally, a new expense or new asset is a debit, and reducing an asset is a credit. Money earned (revenue) or a new liability or amount due to someone (vendor, employee, etc.) is a credit. Review these examples and you will observe the pattern.
Journal Entry Examples - AccountingVerse
Reflection:
The example in the article above for 'Gray Electronic Repair Services' demonstrates the balance of increasing and decreasing your accounts within your journal in order to manage your debits and credits. Can you see a pattern to help you understand how to record entries based on your chart of accounts?
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