Rules of Debit and credit MGT 101

[diya mughal]

Debit and credit are derived from two “Italian” words.

In Italic language left side is called “Debuer” (Dr.) and right side
is called “Creduer” (Cr.).

Classification of Accounts
Accounts Involved Increase(+) Decrease(-)

Assets
Cash, Furniture, Supplies, Drawings, Land, A/R, Building, Equipment,
Merchandise, Bank.

Debit

Credit

Expenses
Purchase, Salary, Sales Return, Charity, Postages, Stationary, Rent,
Electricity charges, Discount Allowed, Wages, Interest.

Debit

Credit

Liabilities
A/R, Capital, Bank loan.
Credit

Debit

Income
Commission, Purchase Return, Services, Sales, Discount Received

Credit
Debit