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    jopdn's Avatar
    jopdn Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 12, 2008, 07:34 AM
    How to make journal entries
    I'm trying to check my sons accounting project for high school. His journal entry for the following I believe to be wrong:

    1) sold services on account for 450.00 he has

    Cr service sales for 450.00 but no debit. On the journal page

    I think it should be

    Cr service sales for 450.00
    Dr general side for 450.00

    And the ledger entries would be:

    Cr accts recieveable 450
    Dr sales service 450


    Is this correct

    I appreciate your help
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 16, 2008, 02:07 PM
    Don't know if it's too late for this... (I keep saying that cause I haven't been here and keep answering things several days old... )

    You're both incorrect. Remind your son that ALL entries must have equal debits and credits, and therefore cannot just have a credit without an equal debit.

    But "general side" isn't an account, so you can't debit it. I don't know what you mean by that. And you don't make "entries" to the general ledger. You "post" to the general ledger, which is merely copying the numbers from the general journal. i.e. whatever goes into the journal is the same thing that will end up in the ledger. So you have two different things here and that is not possible. If we pretend for a second that "general side" is really an account used when journalizing, then "general side" would have to be the same place it goes to in the ledger.

    The debit is to Accounts Receivable. That much is correct. But the entry to do that goes into the journal, and those same numbers would be copied the same way into the ledger when the posting is done.
    gigglezgrl's Avatar
    gigglezgrl Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Mar 16, 2008, 02:55 PM
    Quote Originally Posted by jopdn
    im trying to check my sons accounting project for high school. his journal entry for the following i believe to be wrong:

    1) sold services on account for 450.00 he has

    cr service sales for 450.00 but no debit. on the journal page

    i think it should be

    cr service sales for 450.00
    dr general side for 450.00

    and the ledger entries would be:

    cr accts recieveable 450
    dr sales service 450


    is this correct

    i appreciate your help
    Also it would only go under accounts receivable if the client has not paid you yet.
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