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Making Sense of Debits & Credits

basic accounting and the general journal

lynda shanks

on 28 June 2010

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Transcript of Making Sense of Debits & Credits

what are
debits & Credits? Debit (Dr)

Credit (Cr)
Rules Debits must always come before Credits The $ amount entered on the debit must equal the $ amount entered on the credit Expanded Accounting Equation
A + E + D = L + E + R
Left (Dr) Right (Cr)
Debit balance Credit balances
Debit increase Credit increase
Credit decrease Debit decrease
left right format Debits and credits are used to identify whether an account balance increases or decreases. drive on the left crash on
the right
Full transcript