0Rules for Debit and Credit:
Increases in assets - Debit
Decreases in assets - Credit
Increases in liabilities & Capital - Credit
Decreases in liabilities & Capital - Debit
All Expenses - Debit
All Incomes - Credit
Summary of basic double entry transactions
|
| Transaction | A/C to be debited | A/C to be credited |
| 1 | Introduce capital | Bank/Cash/Asset | Capital |
| 2 | Buy asset | Asset | Bank/Cash/Asset Creditors |
| 3 | Sell Asset | Bank/Cash/Asset Debtor | Asset |
| 4 | Borrow Money | Bank/Cash | Loan |
| 5 | Repay Loan | Loan | Bank/Cash |
| 6 | Owner’s Drawings | Drawings | Bank/Cash/Purchases |
| 7 | Receive Income | Bank/Cash | Individual income |
| 8 | Pay Expenses | Individual expense | Bank/Cash |
| 9 | Withdraw money for office use | Cash | Bank |
| 10 | Pay cash into bank | Bank | Cash |
| 11 | Buy stock for resale | Purchases | Bank/Cash/ Creditor |
| 12 | Return stock to supplier | Bank/Cash/Creditor | Purchases Returns |
| 13 | Sell business stock | Bank/Cash/Debtor | Sales |
| 14 | Stock returned by customer | Sales Returns | Bank/Cash/Debtor |
| 15 | Payment to creditor | Creditor | Bank/Cash |
| 16 | Receipt from debtor | Bank/Cash | Debtor |
| 17 | Carriage on purchases | Carriage Inwards | Bank/Cash/Creditor |
| 18 | Carriage on sales | Carriage Outwards | Bank/Cash |
| 19 | Discount to customers | Discount Allowed | Debtor |
| 20 | Discount from supplier | Creditor | Discount Received |
| 21 | Write off bad debt | Bad debts | Debtor |
