Accounting and Finance for Lawyers
To make a double-entries in a general journal, the three questions are:
- What has happened?
- Which accounts are affected?
- In which direction are the affected accounts?
E.g., if someone contributes $5,000 in exchange for stock, and $2,000 is used to buy supplies, half on credit:
O/E means owner's equity.
A/R means accounts receivable.
N/R means notes receivable.