Debits and Credits Flashcards
When an asset increases?
Debit asset account
When an expense increases?
Debit rent expense
When a company pays dividends?
Debit dividends
When a liability decreases?
Debit accounts payable
Owner’s drawings?
Debit owner’s drawings
When business receives loan?
Debit bank or cash account
When recording depreciation?
Debit depreciation expense
When interest is incurred on a loan or debt?
Debit interest expense
When a liability increases?
Credit accounts payable
When a revenue increases?
Credit Sales revenue
When an owner’s equity increases?
Credit owner’s capital
When there is a revaluation gain?
Credit revaluation surplus
When there’s a decrease in asset?
Credit asset account
When there’s a decrease in expenses?
Credit expense account
When there is a revaluation loss?
Debit revaluation surplus
