Double Entry

Question 1

How does double entry generally work.

Answer 1

RAIL
Running costs
Assets
Income
Liabilities

Question 2

What are the 4 type of T accounts

Answer 2

Running cost T Accounts: Business insurance, Rent for office space
Asset T Accounts: Trade receivables, cash etc
Income T accounts: Sales revenue,
Liability T accounts: Expense, Current accounts etc:

Question 3

Generally what is the idea for T accounts

Answer 3

Anything that causes an increase is debited
Anything that causes a decrease is credited