Monday, December 12, 2011

How do you know which account to put a transaction under?

How do you know which transaction to put under an account? I haven't mastered that yet and I have a teacher who hasn't taught anything, but expects me to know this. Is there any logic to finding out what transactions go under which accounts?





Ex; Received cash from fees earned for managing rental property, $4500. Which accounts get effected? And how do I figure out this for other transactions?|||You had earnings.


You were paid in cash.





dr cash 4,500.


cr fees earned 4,500. (managing rental property)





There's a lot more to learn.





There are asset"s, liability's, capital, revenue, and expenses.





Look up these classifications and what accounts are associated with each class and their normal balances.|||If the names of the accounts are not provided, then you must make them up as accurate as you can


So the accounts would be


Cash


Rental Property

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