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Debit & Credit Left side & Right side Accounting equation. Accounts accumulate the results of transactions. Debit are always entered on the left side.

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Presentation on theme: "Debit & Credit Left side & Right side Accounting equation. Accounts accumulate the results of transactions. Debit are always entered on the left side."— Presentation transcript:

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2 Debit & Credit Left side & Right side

3 Accounting equation. Accounts accumulate the results of transactions. Debit are always entered on the left side of an account, and credits are always entered on the right side. Debits increase asset, expense, and dividend accounts and decrease liability, owners’ equity, and revenue accounts. Credits decrease asset, expense, and dividend accounts and increase liability, owners’ equity, and revenue accounts. Revenues increase owners’ equity, whereas expenses and dividends decrease owners’ equity. Therefore, under a double-entry system of accounting, it is always possible to check the accounting records to see that Assets = Liabilities + Owners’ Equity and debits equal credits. Sources: Financial Accounting by SKOUSEN/ALBRECHT/STICE/STICE. 7TH.

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