Accounting Transaction Rules

As stated, there are specific rules associated with each Accounting Transaction Type. The rules determining which Accounts are debited and which are credited are defined for each kind of Accounting Transaction¸ its Accounting Transaction Type.;

These rules describe the debits and credits to be created for all Accounting Transactions that are examples of that Accounting Transaction Type. Inferring from the example in Table 11-3, a cash sale always credits (adds to) the Equity Account “revenue” and debits (adds to) the Asset Account “cash”.

Figure 11-4 shows how each Accounting Transaction Type must be composed of one or more Credit Rules and one or more Debit Rules.

These are sub-types of Accounting Rule Entry, so ...

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