Tham khảo tài liệu 'bookkeeping for dummies_3', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | More free books @ Chapter 4 Ledgers A One-Stop Summary of Your Business Transactions 61 These three accounts Cash Accounts Receivable and Accounts Payable are part of the balance sheet which I explain fully in Chapter 18. Asset accounts on the balance sheet usually carry debit balances because they reflect assets in this case cash owned by the business. Cash and Accounts Receivable are asset accounts. Liability and Equity accounts usually carry credit balances because Liability accounts show claims made by creditors in other words money owed by the company to financial institutions vendors or others and Equity accounts show claims made by owners in other words how much money the owners have put into the business . Accounts Payable is a liability account. Here s how these accounts impact the balance of the company Assets Cash Usually debit balance Liabilities Accounts Payable Usually credit balance Equity Accounts Receivable Usually debit balance Here s how these accounts impact the balance of the company The Sales account see Figure 4-8 isn t a balance sheet account. Instead it s used in developing the income statement which shows whether or not a company made money in the period being examined. For the lowdown on income statements see Chapter 19. Credits and debits are pretty straightforward when it comes to the Sales account Credits increase the account and debits decrease it. The Sales account usually carries a credit balance which is a good thing because it means the company had income. What s that you say The Sales account should carry a credit balance That may sound strange so let me explain the relationship between the Sales account and the balance sheet. The Sales account is one of the accounts that feed the bottom line of the income statement which shows whether your business made a profit or suffered a loss. A profit means that you earned more through sales than you paid out in costs or expenses. Expense and cost accounts usually carry a
