Journal in Accounting and Debit Credit Rule
Debit Credit Rule :
1 . If assets increase ( + ) in the journal debit
2 . If the asset is reduced ( - ) in the journal credit
3 . If the debt increase ( + ) in the journal credit
4 . If the debt is reduced ( - ) in the journal debit
5 . Capital increase ( + ) in the journal credit
6 . Revenue in the journal credit
7 . Burdens or Loads or Expenses in the journal debit
8 . Prive in the journal debit
Journal in Accounting:
1 . Cash ( + ) $ xxx ( 1 )
Capital ( + ) $ xxx ( 5 )
( The initial investment by the owner )
2 . Receivables $ xxx ( 1 )
Sales / Revenue $ xxx ( 6 )
( Sales of goods / services on credit )
3 . Salaries $ xxx ( 7 )
Cash $ xxx ( 2 )
( Paid salaries )
4 . Rent expense $ xxx ( 7 )
Cash $ xxx ( 2 )
( Paying rent expense )
5 . Equipment ( AC , Fridge , Etc. ) $ xxx ( 1 )
Debt $ xxx ( 3 )
( Purchase of equipment on account )
6 . Debt $ xxx ( 4 )
Cash $ xxx ( 2 )
( Payment of debt from the purchase of the above equipment )
7 . Cash $ xxx ( 1 )
Receivables $ xxx ( 2 )
( Acceptance of money from the sale of goods and services on credit )
8 . Consumables $ xxx ( 1 )
Debt $ xxx ( 3 )
( Buying consumables on credit)
9 . Cash $ xxx ( 1 )
Revenue / Sales $ xxx ( 6 )
( Sales in cash )
10 . Capital ( prive ) $ xxx ( 8 )
Cash $ xxx ( 2 )
( Withdrawal of money by the owner = Prive )
1 . If assets increase ( + ) in the journal debit
2 . If the asset is reduced ( - ) in the journal credit
3 . If the debt increase ( + ) in the journal credit
4 . If the debt is reduced ( - ) in the journal debit
5 . Capital increase ( + ) in the journal credit
6 . Revenue in the journal credit
7 . Burdens or Loads or Expenses in the journal debit
8 . Prive in the journal debit
Journal in Accounting:
1 . Cash ( + ) $ xxx ( 1 )
Capital ( + ) $ xxx ( 5 )
( The initial investment by the owner )
2 . Receivables $ xxx ( 1 )
Sales / Revenue $ xxx ( 6 )
( Sales of goods / services on credit )
3 . Salaries $ xxx ( 7 )
Cash $ xxx ( 2 )
( Paid salaries )
4 . Rent expense $ xxx ( 7 )
Cash $ xxx ( 2 )
( Paying rent expense )
5 . Equipment ( AC , Fridge , Etc. ) $ xxx ( 1 )
Debt $ xxx ( 3 )
( Purchase of equipment on account )
6 . Debt $ xxx ( 4 )
Cash $ xxx ( 2 )
( Payment of debt from the purchase of the above equipment )
7 . Cash $ xxx ( 1 )
Receivables $ xxx ( 2 )
( Acceptance of money from the sale of goods and services on credit )
8 . Consumables $ xxx ( 1 )
Debt $ xxx ( 3 )
( Buying consumables on credit)
9 . Cash $ xxx ( 1 )
Revenue / Sales $ xxx ( 6 )
( Sales in cash )
10 . Capital ( prive ) $ xxx ( 8 )
Cash $ xxx ( 2 )
( Withdrawal of money by the owner = Prive )
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