Enterprise: Debit Credit Rules

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M1EnterpriseTech
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Enterprise: Debit Credit Rules

Post by M1EnterpriseTech »

In financial accounting, Debits and Credits are simply the left and right side of a T-Account respectively.
They are used to indicate the increase and decrease in certain accounts. When there is a change in an
account, that change is indicated by either debit or crediting that account according to the following rules:

ASSETS and EXPENSES
  • An Increase is recorded as Debit (left side)
  • A decrease is recorded as Credit (right side)
LIABILITIES, EQUITIES and REVENUES
  • A decrease is recorded as Debit ( left side)
  • An increase is recorded as Credit (right side)
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