Hello all, I am a bit confused about what items go to credit and debit. I would really appreciate any tips on learning this. Thank you!
ACCA Forums
FACredit/Debit confusion
Increase in assets is a debit. Decrease in assets is a credit.
Increase in capital is a credit. Decrease in capital is a debit.
Increase in liability is a credit. Decrease in liability is a debit.
All the above is tied to the accounting equation. Owners equity(capital)= Assets- liabilities
Please also see the following-
https://opentuition.com/fia/fa1/the-accounting-equation-and-the-principles-of-double-entry-bookkeeping/
Hope this helps.
If you have any further questions please ask.
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