Question

What are the two sides of an account called

Answer 1

Answer:

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Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit.

Answer 2

Answer:

There are two sides to an account which are called debit and credit sides.

Explanation:

Journal Entry:

• A journal entry is an act of recording any transaction, whether one is commercial or not.
• An accounting diary that displays the debit and credit balances of a corporation lists transactions.
• Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.

Debit Side:

• An account's left side is its debit side.
• This is the first debit item that is discharged or diminished by the first credit item in the account.
• If the sum of the debit side exceeds the credit side, the account is said to have a debit balance.

Credit Side:

• An account's right side is its credit side.
• The balance sheet's credit side contains a list of the transactions that involved cash payments.
• Increases in assets are documented on the debit side of asset accounting, whereas reductions are reported on the credit side.

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