briefly state the rules of debiting and crediting accounts classified on the basis of accounting equation?
Hi,
One should keep in mind the following rules while making an accounting equation. We all know, the three accounts involved in accounting equation viz. assets, liabilities and capital. The associated rules with these accounts are enumerated below.
(a) Assets: Increase in assets is debited and decrease in assets is credited
(b) Liabilities: Increase in liabilities is credited and decrease in liabilities is debited
(c) Capital: Increase in capital is credited and decrease in capital is debited
One should keep in mind the following rules while making an accounting equation. We all know, the three accounts involved in accounting equation viz. assets, liabilities and capital. The associated rules with these accounts are enumerated below.
(a) Assets: Increase in assets is debited and decrease in assets is credited
(b) Liabilities: Increase in liabilities is credited and decrease in liabilities is debited
(c) Capital: Increase in capital is credited and decrease in capital is debited