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    annie shah's Avatar
    annie shah Posts: 2, Reputation: 1
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    #1

    Oct 31, 2009, 07:49 AM
    Effects of transaction: debit cash, credit account recievable
    Tel me the effects of transactions? Debit accounts payable, credit cash.
    annie shah's Avatar
    annie shah Posts: 2, Reputation: 1
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    #2

    Oct 31, 2009, 07:53 AM

    In 1st cash increase laibility decrease, in 2nd cash decrease liability also decrease... is it rite or not?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Oct 31, 2009, 02:38 PM

    Debits to an asset increase the account, while a Credit decreases the account.

    A Credit to a Liability and Equity accounts increase the account, while a Debit decreases the account.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Nov 1, 2009, 07:47 PM
    Quote Originally Posted by annie shah View Post
    in 1st cash increase laibility decrease, in 2nd cash decrease liability also decrease........ is it rite or not?
    Cash won't do a thing to liabilities, because it's not one. To do something to a liability, you have to do it directly to that liability. Doing something to one account cannot affect another account.
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