The inventory (asset) of the business will increase by the $2,500 cost of the inventory and a trade payable (liability) will be recorded to represent the amount now owed to the supplier. Assets represent the valuable resources controlled by a company, while liabilities represent its obligations. Both liabilities and shareholders’ equity represent how the assets […]
Bookkeeping
Normal Balance of Accounts
So if $100 Cash came in and you Debited/Positive next to the Cash Account, then the next step is to determine where the -$100 is classified. Many educational websites offer downloadable notes on accounting topics. Search online for „rules of debit and credit class 11 PDF“ to find suitable resources. Always check the source’s reliability […]