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Apology to ask this after watching ur video but i really needed to know this.
Is it correct that:
1) If the interest account is debited then it means that there is an expense. BUT if the interest account is credited then there is an income.
2) If the capital account is debited then there is reduction in capital. BUT if it is credited then there is more capital.
3) If an asset account is debited then there is more assets. But if it is credited then there is reduction in assets.
4) IF an expense account is debited then there is more expenses. BUT if it is credited then there is reduction in expenses.
5) IF an income account is debited then there is reduction in incomes. BUT if it is credited then there is more income.
6) If a drawing account is debited then there is reduction in capital. BUT if it is credited then there is more capital.
7) It depends on the account of the item what does debit or credit mean.
Thanks!
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Thanks for your answer. It was really helpful. Please tell me one more thing that…
Is it correct that there are (6) accounts in accounting and eveything is categorised into them such as:
1) Asset accounts
2) Expense accounts
3) Drawing accounts
4) Revenue accounts
5) Equity accounts
6) Liabilities accountsThese accounts are used to record ALL the double entries in accounting (right?)
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