Easy Way To Remember Debit And Credit Rule
Rules of Debit And Credit are very important for knowings which Account to be debited and which is needed to be credited. There is an easy way to remember or lean debit and credit rules for an account. This is the simplest and easiest way which is given below: (a) Rules For Assets And Expenses are the same. (i) Increase in Assets / Expenses = Debit (ii) Decrease in Assets / Expenses = Credit Also Read Out, “ What Are Debit And Credits In Accounting ” All Accounts which have debit balance normally should be debited when increase and credited when there is a decrease in the amount. (b) Rules For Liabilities , Owner’s Equity And Revenues (i) Increase in Liabilities / Owner’s Equity / Revenues = Credit (ii) Decrease in Liabilities / Owner’s Equity / Revenues = Debit Any account which has credit balance normally is credited when it increases and debited when there is decrease in its ru...