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    Summary 3 - DR & CR

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    Anne Thea Atienza
    The document discusses the double entry accounting system where each transaction affects at least two accounts and the total debits must equal the total credits. It explains that accounts are debited on the left side and credited on the right side and provides rules for debiting and crediting different types of accounts like assets, expenses, liabilities and equity.

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    Summary 3 - DR & CR

    Uploaded by

    Anne Thea Atienza
    9 views1 page
    The document discusses the double entry accounting system where each transaction affects at least two accounts and the total debits must equal the total credits. It explains that accounts are debited on the left side and credited on the right side and provides rules for debiting and crediting different types of accounts like assets, expenses, liabilities and equity.

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    PPT SUMMARY 3- DR & CR

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    The document discusses the double entry accounting system where each transaction affects at least two accounts and the total debits must equal the total credits. It explains that accounts are debited on the left side and credited on the right side and provides rules for debiting and crediting different types of accounts like assets, expenses, liabilities and equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views1 page

    Summary 3 - DR & CR

    Uploaded by

    Anne Thea Atienza
    The document discusses the double entry accounting system where each transaction affects at least two accounts and the total debits must equal the total credits. It explains that accounts are debited on the left side and credited on the right side and provides rules for debiting and crediting different types of accounts like assets, expenses, liabilities and equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    PPT SUMMARY- DEBIT AND CREDIT

    Debits and Credit- The Double Entry System


    Accounting is based on double-entry system
    which means the dual effect of a business
    transaction is recorded. Each transaction affects at
    least two accounts.
    - The total debits for a transaction must be
    always equal the total credits.
    - Account may be defined as a detailed record
    of the increases, decreases and the balance of
    each element that appears in an entity’s
    financial statements.
    - An account is debited when an amount is
    entered on the left side of the account and
    credited on the right side.

     Drawings/ Withdrawals, expenses and Asset


    (DEA)
    - Increases in Drawings/withdrawals, expenses
    and asset (DEA) are recorded as debits
    (Debit +)
    - Decreases in Drawings/withdrawals,
    expenses and assets (DEA) are recorded as
    credits (credit -)
    - Normal balance= “Debit”

     Liabilities, equity/owner’s equity and


    revenue (LER)
    - Increases in liabilities, equity/owner’s equity
    and revenue (LER) are recorded as debits
    (Debit-)
    - Normal balance= “Credit”

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