An Analysis of Double Entry

Cover An Analysis of Double Entry
An Analysis of Double Entry
James J James John Linn
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00 Cash 5. 00 2) Cash 2. 00 Accounts Receivable ' 2. 00 These transactions illustrate the two general types of partition changes: 1) a change (either increase or decrease) in the total number of dollars of account; 2) no change in the total number of dollars of account but a For example some European journal entries are of the form: Account Amount Dr. ^ Cr.
Cash Accounts pay. 5. 00 12.
transfer among one of the types of partitions. Examples: A) Asset Liability of Net Wor^h 1) Cash Accounts Paya
...ble 2) Cash Accts .
Rec.
2. 00 5. 00 5. 00 2. 00 B) G) Account 1) Accounts Pay. Cash 2) Cash Accounts Rec .
Asset 2. 00 5. 00- 2. 00 + _ 1) Accounts Pay. Cash 2) Cash Accounts Rec.
L. &N. W.
5. 00 Amount 5. 00 5. 00 2. 00 2. 00 D) Asset 1) 2) Cash Cash Accts . Rec .
L. &N. W.
Amount Accts. Pay. 5. 00 2. 00 There are three things which must be indicated: 1) account (partition) affected, 2) how affected (increase or decrease; in the traditional system debit 13 1. 2 or credit), and 3) amount.^ In this respect these four illustrations and the traditional system are equivalent.


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