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Expenses Paid by Check


   

Enter all the checks you have written into your computer software. In terms of how they affect your accounts, each entry will be a credit to (decrease in) cash and a debit to (increase in) the related expense account. Make certain each item is assigned to the correct expense account.

As a convenience, it is nice to write the expense category in the check book when you write the check so you don't have any trouble remembering what this purchase was for.

The exception to this is payments on loans, payments made on large equipment or fixtures, or additions to inventory which are debited to longterm asset and liability accounts.

 

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