8 Essential Rules of Debit and Credit

The left side of an account is called Debit and the right side of an account credit. Again, entering an amount on the left side of an account is called debiting the account; making an entry on the right side is crediting the account. Here are the rules of debit and credit stated below:

But rules of debit and credit mean the lows of debiting and crediting an account. Therefore, rules of debit and credit state why an account is debited, and why an account is credited.

Rules of debit and credit

1. Assets accounts are increased by debits and decreased by credits.

Rules of debit and Credit

2. Expenses accounts are increased by debits and decreased by credits

expenses_accounts

3. Drawing accounts are increased by debits and decreased by credits

drawing_accounts

4. Liability accounts are decreased by debits and increased  by credits

liability_account

5. Revenue accounts are decreased by  debits and increased by  credits

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6. Owner’s equity accounts are decreased by debt and increased by credit

rules_of_debit_and_credit_owner’s_equity_accounts

7. Assets, expenses, drawings are increased by debit and decreased by credit,

8. Liabilities, revenues; capitals are increased by credit and decreased by debit.

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