0
Debit refers to the left side, and credit to the right side.
Balance sheetFor example: A balance sheet has a left side (debit) including the assets and a right side (credit) showing the liabilities and equity. T-accountLikewise, a T-account (used to record transactions) has a debit side and a credit side. For some T-accounts the debit side means increases (and credit decreases), while for other T-accounts it is the reverse.
Wiki User
∙ 13y ago
Wiki User
∙ 14y agoUsing double entry book-keeping, every financial transaction has a debit and credit entry. The debit being a positive number, and the credit being negative. For example a sale is a credit to the P&L, and a debit to the Debtors Ledger.
Anonymous
Debit takes away from an t account. Credit adds to a t account
Add your answer:
Earn +20 pts
Is prepaid accounts a debit or credit?
It's a debit
Is rates and taxes debit or credit?
It is debit on your accounts
Is Revenue accounts increase by credit or debit?
revenue accounts increase by credit
What is the journal entry for purchase on credit and sales on cash?
Debit: Purchases Credit: Accounts Payable Debit: Cash Credit: Sales
Is Accounts Payable a debit or credit on the trial balance?
debit
A decrease to accounts payable is a debit or credit?
debit
Is prepaid accounts a debit or credit?
It's a debit
Is rates and taxes debit or credit?
It is debit on your accounts
Is Revenue accounts increase by credit or debit?
revenue accounts increase by credit
What is the journal entry for purchase on credit and sales on cash?
Debit: Purchases Credit: Accounts Payable Debit: Cash Credit: Sales
Is Accounts Payable a debit or credit on the trial balance?
debit
What is the journl entry for puchasing goods on account?
[Debit] Purchases [Credit] Accounts payable
What is the journal entry of credit purchase?
[Debit] Purchases account [Credit] Accounts Payable
What is the order of the accounts in preparing t accounts?
debit and credit
Is a decrease in accounts receivable debit or credit?
A Credit entry reduces Accounts Receivable
What are the three golden rules of accounting with examples?
Personal Accounts- Debit-The Receiver; Credit-The Giver. Real Accounts- Debit-What Comes In; Credit-What Goes Out. Nominal Accounts- Debit- All expenses and Losses; Credit- All Incomes and Gains.
How do you write off accounts payable?
Debit Accounts Payable and Credit either the account where the original debit was made or Credit Other Income
