Equity accounts, a debit decreases the balance and a credit increases the balance.Liability accounts, a debit decreases the balance and a credit increases the balance.Asset accounts, a debit increases the balance and a credit decreases the balance. The debit or credit balance of a ledger account in the Chart of Accounts at the end of an accounting period or year-end is called closing.Understand the concept of Business Transaction and Source Document here in detail.Ī debit and credit entry have a broad impact on different accounts. Third: Debit the receiver, Credit the giver.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |