Why Assets Are Debited And Liabilities Are Credited
Because the normal or usual or favorab le or positive b ala nce of Assets is deb it b ala nce, accordin g to the Rules of Debit And Credit . W he n assets acquired b y the b usi ness usually t h roug h cas h or b a nk account, we deb it asset accou nt as it t h ese are increased or come into b usi ness as resources w h ile cas h or b a nk account is decreased, so we credit cas h or b a nk account at t h e same time. It is also acquired t h roug h a liab ility accou nt w hich i ncreases t h e value of b oth asset a nd liab ility accou nts in t he b ooks of accou nts. On t he ha nd, liab ilities are credited as these are i ncreased, we credit t hese accordi ng to t he g enerally accepted rules of deb it a nd credit. W he n a liab ility is created, it is paya b le b y the b usi ness to outsiders wit hi n specified time period. So, it is a b urde n or ob ligatio n of t he b usi ness to pay to outsiders. As a result, it is a outflow for t he b usi ness to pay to sup...