The Theory of Debit And Credit in Accounting
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Has been already credited with the value of the picture, and therefore it is not necessary to credit his account again. A. 's account shows a credit of fifteen hundred dollars, and the cash account shows a debit of fifteen hun- dred dollars.
A. Wishes the money. Therefore I pay the fifteen hundred dollars to A. , and debit his account, and credit the cash account, which represents me; and the transaction is closed.
In the above discussion the words " debtor " and " creditor " are used in their ...accounting sense. In accounting, the terms " deb tor" and " creditor" may express the legal relation of agent and principal, as well as the legal relation of debtor and creditor. From a legal point of view, it is possible, in the above money transactions, to regard A. As a principal and me as an agent, or A. As a creditor and me as a debtor. In both events, however, my accounts would be kept in the same way; except that, if the relation be- tween A. And me is that of principal and agent, there might be a statement to that effect.
What to read after The Theory of Debit And Credit in Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Robert Gardner Mcclung to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Has been already credited with the value of the picture, and therefore it is not necessary to credit his account again. A. 's account shows a credit of fifteen hundred dollars, and the cash account shows a debit of fifteen hun- dred dollars.
A. Wishes the money. Therefore I pay the fifteen hundred dollars to A. , and debit his account, and credit the cash account, which represents me; and the transaction is closed.
In the above discussion the words " debtor " and " creditor " are used in their ...accounting sense. In accounting, the terms " deb tor" and " creditor" may express the legal relation of agent and principal, as well as the legal relation of debtor and creditor. From a legal point of view, it is possible, in the above money transactions, to regard A. As a principal and me as an agent, or A. As a creditor and me as a debtor. In both events, however, my accounts would be kept in the same way; except that, if the relation be- tween A. And me is that of principal and agent, there might be a statement to that effect.
What to read after The Theory of Debit And Credit in Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Robert Gardner Mcclung to read onlineMoreLess
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