THE RECORDING PROCESS of Capital After studying this chapter, you should be able to: accounts
1 Explain how the capital accounts works in the recording
process 2 Present the debits and credits of capital accounts and explain how they are used to record business transactions 3 Identify the basic steps in the recording process for business transactions who involve capital accounts 4 Present how are recorded capital transactions in the General Journal
Credits (-)
Decrease assets
Credits (+)
Increase Credit balance
Decrease
Liabilities&Capital
Debit Decrease Increase Credit
Normal Balance
Balance
Credits
Increase owners capital
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