Discuss the debit/credit rules. Do not over analyze these rules. You should just memorize them. You should also be familiar with the recording process. This process requires that you first analyze each business transaction to determine which accounts are affected by the transaction. Enter each transaction in the general journal and then "post" each transaction to the individual accounts in the general ledger. After you have posted all of your transactions to the general ledger accounts, a trial balance should be prepared to prove the equality of your debits and credits. I find acronyms helpful when memorizing rules.

The following acronyms may be helpful as you memorize debit/credit rules. For INCREASES to the accounts: Use the acronyms DEA and CLR.

DEA:debit Dividends,Expenses, andAssets to INCREASE these accounts. (Decreases are the opposite).

CLR:credit Common Stock,Liabilities, andRevenues/Retained Earnings to INCREASE these accounts. (Decreases are the opposite.)