Project 1

1. Project 1

1.10. Page 3

Training Room 3: Analyzing Temporary Capital Accounts

Time to Practise

Refer to the Analyzing Transactions chart below. You may also access Analyzing Transactions any time you need to by going to the Toolkit.

Don’t forget the steps to help you analyze transactions into their debit and credit parts.

Transaction Analysis Steps

Step 1: Which accounts are affected? (refer to the account titles and place on T-accounts)

Step 2: What types of accounts are these?

Step 3: What does the T look like for this type of account? (refer to

Analyzing the Balance Sheet in Tips and Tricks in the Toolkit)

Step 4: Are these accounts increasing or decreasing?

Step 5: Are these accounts debits or credits?

A three dimensional character sitting on a question mark thinking.

The totals on the left (debit) side of the T-account always equal the totals on the right (credit) side of the T-account.

Practice 1 and Practice 2

Work through the practice activities in “T-accounts Practice 1 and Practice 2.” Be sure that you are comfortable with analyzing transactions before continuing to the assessment assignment in Time to Work.

Practice 3 (Optional)

If you need more practice, go to Tetraccounting1.

1 Version 1.1 Developed for NAIT and McGraw-Hill, 2002 by Rebecca Marcil under a Creative Commons licence. Reproduced with permission. (http://digilearn.nait.ab.ca/careo/Accounting/PCgame/)