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Making Sense of Debits & Credits
Transcript of Making Sense of Debits & Credits
debits & Credits? Debit (Dr)
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