Diah Novianti
Kamelia Suciana
If we make income statement in the office, so it will be easy to know our office is
profit or lost.
If an office purchase vehicles with cost 100.000.000, so it will record in the general
journal. A debit of 100.000.000 to vehicles, A credit of 100.000.000 to cash in bank.
If an office is loss, so the condition of the office will not good. Like the office can’t
pay the salaries of yhe employes.
If an office has good accounting system, so the investors will invest their capital to
office. And the investors will get a stock.
For example: office purchase equipment with the cost 50.000.000. so the general
journal is: A debit of 50.000.000 to cash and A kredit of 50.000.000 to equipment.
But it is wrong, and the true journal is A debit of 50.000.000 to equipment and A
kredit of 50.000.000 to cash.
c. The occurrence of a fire in the office