Page Comparison

Panel

borderColor	blue
bgColor	#B3D4FF
borderWidth	1
borderStyle	solid

Debits and Credits Rules

Excerpt

Quite simply there are 5 account types and each one can go up or down as follows.

D E A D C L I C
This acronym stands for:

Debit Expenses, Assets and Drawings; and,
Credit Liabilities, Income and Capital.

Column

width	60%

Account Group	Account Value Increase	Account Value Decrease	Balance
Assets A/R Cash	DR	CR	DR
Contra Asset	CR	DR	CR
Liabilities Deposits Taxes Due Prepaid Sales	CR	DR	CR
Contra Liabilities	DR	CR	DR
Owner (Stockholders') Equity	CR	DR	CR
Owner's Drawing or Dividends Account	DR	CR	DR
Revenue (Income) Sales Gains	CR	DR	CR
Contra Revenue Sales Returns Sales Allowances Sales Discounts	DR	CR	DR
Expenses Discounts Losses	DR	CR	DR

Column

width	40%

Info
You apply this DEAD CLIC rule if an account goes up in value. If an account goes down in value, you apply the opposite. In other words, if an expense increases in value, then you debit the account (because the DEAD CLIC rule says to Debit Expenses). If an expense decreases in value, then you credit the account.

Note
Remember also that every financial transaction affects two accounts, one is a debit, the other a credit. This is why we call it double entry (not single entry) bookkeeping. Refer to the T-account examples below, and on each Business Transaction page.

Source: "Debits and Credits Rule"; www.accountagility.co.nz; https://www.accountagility.co.nz/accounting/debits-and-credits/; accessed 2-11-2020

View file

name	Accounting Coach - Debits and Credits Cheat Sheet.pdf
height	250

Insert excerpt

	UG:Setup & Admin Guides
	UG:Setup & Admin Guides
nopanel	true

Info

title	Definitions

Refer to the 'Inventory and Accounting Definitions' wiki page for the definition of inventory and accounting terms, and for details about fields and controls.

Panel

title	Contents

Table of Contents

Versions Compared

Old Version 24

New Version 25

Key

Debits and Credits Rules