Debits and credits



Section 7. Summary

Q35. Debits and credits
On which side of a journal entry are the following transactions recorded?
(1) Increases in asset accounts
(2) Increases in expense accounts
(3) Increases in liability accounts
(4) Increases in equity accounts
(5) Increases in revenue accounts

A35. Assets + Expenses = Liabilities + Equity + Revenues

(1) Increases in asset accounts are recorded on the debit side.
(2) Increases in expense accounts are recorded on the debit side.
(3) Increases in liability accounts are recorded on the credit side.
(4) Increases in equity accounts are recorded on the credit side.
(5) Increases in revenue accounts are recorded on the credit side.

(6) Decreases in asset accounts are recorded on the credit side.
(7) Decreases in expense accounts are recorded on the credit side.
(8) Decreases in liability accounts are recorded on the debit side.
(9) Decreases in equity accounts are recorded on the debit side.
(10) Decreases in revenue accounts are recorded on the debit side.

© AccountingInfo.com