when posting to ledgers, how am i supposed to know if they are debits or credits?
2007-01-18 05:07:09 · 7 answers · asked by ashmstan 1 in Education & Reference ➔ Homework Help
Depends. Here are the quick rules:
Debit an asset to increase it.
Credit an asset to decrease it.
Debit a liability to decrease it.
Credit a liability to increase it.
Debit Capital accounts (owner's equity) to decrease it.
Credit Capital accounts to increase it.
Hope that helps.
2007-01-18 05:12:45 · answer #1 · answered by theeconomicsguy 5 · 2⤊ 0⤋
if you are posting on the right side of the traditional ledger, you are posting the credit side of the ledger. if it is on the left side, it is a debit. I am assuming you are looking at the conventional T form ledger.
2007-01-18 05:10:45 · answer #2 · answered by Arun Unni 2 · 0⤊ 1⤋
Depends what you are posting.
Payroll is a debit. Invoices you have to pay are debits. Income is a credit. Interest earned is a credit. Interest paid is a debit.
2007-01-18 05:10:59 · answer #3 · answered by kja63 7 · 0⤊ 1⤋
It's opposite of what you would think. A credit is when you are paying out such as paying a loan or expenses. A debit is when you receive money such as someone has paid you.
2007-01-18 05:12:49 · answer #4 · answered by love2shop 3 · 0⤊ 1⤋
make sure you check your questions. they usually have catagories journalized as to debit or credit. if its expenses, its debit, capital is credit, liablilities is ummm, its been a while since ACC 30. but hope this kinda helps
2007-01-18 05:11:38 · answer #5 · answered by bananananana 3 · 0⤊ 1⤋
ask a hedge fund
2007-01-18 05:10:04 · answer #6 · answered by john h 1 · 0⤊ 2⤋
Help you, or do it for you? That is no way to learn.
2007-01-18 05:10:51 · answer #7 · answered by ROOR 3 · 0⤊ 2⤋