Hi,
i had a question. How do you know what to debit and what to credit when you do a journal entry in accounting. What is the difference between a debit and credit? I have a big test tomorrow and now im all confused when before i was doing fine. Thank you
2007-10-11 11:32:51 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
First, ascertain if the item is an asset, liability, equity, revenue or cost/expense. Assets and costs/expenses are debits; liabilities, equity, and revenues are credits.
I hope this simplified site below can help you.
2007-10-11 15:44:16 · answer #1 · answered by Sandy 7 · 1⤊ 0⤋
basic accounting equation
assets = liabilities + equity + revenue - expenses
assets + expense = liabilities + equity + revenue
assets and expenses is right side
liabilities + equity + revenue are left side
assets and expenses is debit side
liabilities + equity + revenue are credit side
2007-10-11 12:09:34 · answer #2 · answered by Dsalah s 3 · 1⤊ 1⤋
drop the class now!!
2007-10-11 11:46:45 · answer #3 · answered by iocook 2 · 2⤊ 1⤋