Cheat Sheet: T Accounts Formulas, Cheat Sheet of Financial Accounting

Download Cheat Sheet: T Accounts Formulas and more Cheat Sheet Financial Accounting in PDF only on Docsity! T-Accounts make Seperate Computations for Each Specific Account Type (ex. Cash, Accounts Receivable, Supplies, Rent Expense and etc.) in the form of T-Accounts to Tally the Total of Each Account the Debit and Credit of Each T-Account must Bala- nce each other out Debits money Taken from your account to Cover Expenses Credits money Coming Into your account KEEP IN MIND: The Debit and Credit Entry of Each Specific T-Account depends on their Primary Classific- ation which are as follows Primary Classification of Accounts Dr. Cr. 1. Assets (A) (+) (-) Cash or things like Land, Equipment, or Business Vehicles that could be CONVERTED into Cash 2. Liabilities (L) (-) (+) Debts you owe an individual or other businesses (ex. Accounts Payable, Notes Payable, Loans, Unearned Revenue and etc.) 3. Capital/Equity (C) (-) (+) this is the Beginning Capital + Income - Expenses also Owner's Equity = Assets - Liabilities 4. Income/Revenues (I) (-) (+) Cash earned through Sales (INCREASES CAPITAL) 5. Expenses (E) (+) (-) what you Spend money on to Operate the Business (DECREASES CAPITAL)