The Store Account (a real account) is debited - the transaction received a monetary value (Rule 2 in the table). The Electricity Expenses - (A profit and loss account) is debited - as every expense account is debited (Rule 3 in the table). The Goods Account (a real account) is credited - because the warehouse issued goods (Rule 2 in the table). The Cash Account (a real account) is debited - because the cash was received (Rule 2 in the table) The Waterman Account, (a personal account) is credited - as it is due to receive money (Rule 2 in the table). The Goods Account (a real account) is debited - because an account was received (Rule 1 in the table). This will be explained more fully later on.ģ.1.xx Cash payment, Expenses Voucher 001
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We will practice making the bookkeeping records that are the subject of the above table (Comment: In the first part of the solution, the records will be presented in the form of a T account, and they will be presented textually in the second part. 953).ĥ.ĕ,1,xx We rented the store out for $ 700 cash (Invoice No.001) 1950)ģ.ē.1.xx We paid $ 200 cash for electricity expenses (Expense Voucher 001).Ĥ.Ĕ.1.xx We bought a store from Max for $ 20,000 (Invoice No. 123).Ģ.Ē.1.xx We sold part of the goods for $ 600 cash (Receipt No. When the account gives us money/the equivalentĪny account that ends with the words 'Expense Accounts'.Īny account that ends with the words 'Revenue Account'ġ.đ.1.xx We bought goods from Waterman for an overall sum of $ 1,000 (Invoice No.
![expense debit credit expense debit credit](https://media.cheggcdn.com/media/161/161cc299-417e-43cf-af56-590cfca88b08/image.png)
When the account received money/the equivalent When the person in whose name the account is kept is in credit with us When the person whose in whose name the account is kept is in debt to us
![expense debit credit expense debit credit](https://img.homeworklib.com/questions/edf85ab0-6fb9-11ea-a2b1-b78a3fa3dddf.png)
BOOKKEEPING COURSE: THE DEBIT AND CREDIT RULES