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-   -   Credits and debits (https://www.askmehelpdesk.com/showthread.php?t=276826)

  • Nov 3, 2008, 06:10 PM
    ntxawm_2008
    Credits and debits
    I am not understanding which items to put under credits and which goes under debits.
    i.e. cash, accounts receivable, accts payable, rental revenue, supplies expense, etc.

    I do not understand which items go under which statement. i.e. adjustments, income statement,etc.

    :(
  • Nov 3, 2008, 06:19 PM
    pready

    Assets and Expenses have a normal Debit Balance. Assets are on the Balance Sheet.
    Expenses are on the Income Statement.

    Liabilities, Owner's Equity, and revenues have a normal Credit balance. Liabilities and Owner's Equity are on the Balance Sheet. Revenues are on the Income Statement.

    Adjusting entries are shown on a worksheet and jounalized in the General Journal. They do not appear on the Financial Statements because they are a transaction.
  • Jan 25, 2009, 05:11 AM
    ROLCAM

    DEBITS = ALL ASSETS + ALL EXPENSES
    CREDITS = ALL LIABILITIES + ALL INCOMES

    FORMULA = A + E = L + I

    Please remember this for ever.
    You will never go wrong again.
  • Jan 25, 2009, 04:19 PM
    pready

    Adjustments affect one Balance sheet account and one Income Statement account.

    Example for Supplies used during the period.
    Debit Supplies Expense - Income Statement Account
    Credit Supplies - Balance Sheet Account

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