Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 14 - No. 46)
Which statement is correct regarding the debit and credit in the general journal?
Each transaction has one debit and one credit entry.
The total debits must be less than the total credits.
The total debits must equal the total credits.
The total debits must be more than the total credits.
Explanation
The fundamental principle of double-entry bookkeeping requires that for every transaction, the total debits equal the total credits to maintain the accounting equation (Assets = Liabilities + Equity).
Comments (0)
