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- system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a diff account. analyze what did you get, what did you lose. two equal and corresponding sides known as debit and credit.
T- Account
- Separate debit and credit side. Debit means left, credit means right.
- Debit Dr. Credit Cr. , Name and classify accounts affected
- Has an increase side and decrease side
* owner has utang - accs payable
* "on account" accounts receivable
Rules of debit and credit
Debit signifies Credit Signifies
+ assets -assets
-liabilities +liabilities
drawing capital
expenses revenue
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