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General entries doubt of understanding

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MPR Sanjay Kumar

3145 Points Joined November 2020

I found some entries in one University Accounts book

Republic Guyana Bank 54398 a/c Dr.

Cr. To student Mr Jelin John

Republic Guyana Bank 54398 a/c Dr.

Cr. Fees received in advance

after approval book

Dr. Fees received in advance

Cr.Mr.john Jelin

could you please explain me this journal entries why it is in debit and why it is in credit the basic understand I need

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9447 Points Joined December 2011

Journal entries are the building blocks of accounting, and understanding debits and credits is essential. Here's a brief explanation: *Debit (DR)*: - Increases in Assets (e.g., Cash, Accounts Receivable, Inventory) - Expenses (e.g., Salaries, Rent, Utilities) - Losses (e.g., Loss on Sale of Assets) Debits are entered on the left side of a journal entry. *Credit (CR)*: - Increases in Liabilities (e.g., Accounts Payable, Loans) - Equity (e.g., Common Stock, Retained Earnings) - Revenues (e.g., Sales, Service Income) - Gains (e.g., Gain on Sale of Assets) Credits are entered on the right side of a journal entry. Think of it like this: - Debits are like "inputs" or "additions" (increasing assets, expenses, or losses) - Credits are like "outputs" or "subtractions" (increasing liabilities, equity, revenues, or gains) When you understand this basic concept, you'll be able to navigate journal entries with confidence! Remember, the accounting equation (Assets = Liabilities + Equity) is the foundation of journal entries. Debits and credits help maintain this balance. Let me know if you have any specific questions or need further clarification!

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