Task 2- Journalizing the business transactions

a)Identify the effect of the following transactions based on the following criterion. [2 Marks]

Asset

Increase of an asset in the business affects the debit/credit side of the asset account.

Decrease of an asset in the business affects the debit/credit side of the asset account.

Liability

Increase of a liability in the business affects the debit/credit side of the liability account.

Decrease of a liability in the business affects the debit/credit side of the liability account.

Equity

Increase of equity in the business affects the debit/credit side of the equity account.

Decrease of equity in the business affects the debit/credit side of the equity account.

Expenses

Increase of an expense in the business affects the debit/credit side of the expense account.

Decrease of an expense in the business affects the debit/credit side of the expense account.

Income

Increase of an income in the business affects the debit/credit side of the income account.

Decrease of an income in the business affects the debit/credit side of the income account.