If there is an increase or decrease in a set of accounts, there will be equal decrease or increase in another set of accounts. Accordingly, the following rules of debit and credit hold for the various categories of accounts: Assets Accounts: debit entry represents an increase in assets and a credit entry represents a decrease in assets. Capital Account: credit entry represents an increase in capital and a debit entry represents a decrease in capital. Liabilities Accounts: credit entry represents an increase in liabilities and a debit entry represents a decrease in liabilities. Revenues or Incomes Accounts: credit entry represents an increase in incomes and gains, and debit entry represents a decrease in incomes and gains. Expenses or Losses Accounts: debit entry represents an increase in expenses and losses, and credit entry represents a decrease in expenses and losses. These five rules help learning about accounting entries and also are comparable with traditional (British) accounting rules.
if there is an increase or decrease in a set of accounts there will be equal decrease or increase in another set of accounts accordingly the following rules of debit and credit hold for the various categories of accounts assets accounts debit entry represents an increase in assets and a credit entry represents a decrease in assets capital account credit entry represents an increase in capital and a debit entry represents a decrease in capital liabilities accounts credit entry represents an increase in liabilities and a debit entry represents a decrease in liabilities revenues or incomes accounts credit entry represents an increase in incomes and gains and debit entry represents a decrease in incomes and gains expenses or losses accounts debit entry represents an increase in expenses and losses and credit entry represents a decrease in expenses and losses these five rules help learning about accounting entries and also are comparable with traditional (british) accounting rules