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Rules for Journalizing

I.

When Merchandise is bought; Debit Mdse. Credit the seller or what you pay therefor. 2.

When Merchandise is sold; Debit the buyer or what your receive.

Credit Mdse. 3. When Cash is paid; 4. When Cash is received; Debit the accouut for which it is paid.

Credit Cash.

Debit Cash. Credit the account for which it is received. 5. When I give a promisory note; Debit the account paid. Credit Bills Payable. 6. When I receive a promissory note; Debit Bills Receivable. Credit the account for which it is received. 7. When I pay expenses; Debit Profit and Loss. Credit Cash.

Dr.

Folio.

JOURNAL.