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Describe the Debit and Credit Entries.

Describe the Debit and Credit Entries.

Answers

The Debit Entry is shown on the left hand side of an account (Commonly referred to as a “T – Account) while the Credit Entry is shown on the right hand side of an account (Commonly referred to as a “T – Account). Assets are recorded on the debit side while all the liabilities and capital are recorded on the credit side.
Assets and Liabilities are classified into various categories as covered in lesson two and every type of asset or liability must have its own account whereby all transactions affecting them are recorded in that particular account.
This means that there should be individual accounts for Buildings, Equipment, Machinery, Motor vehicles, Furniture & fittings, Debtors, Creditors, etc. For the double entry to be reflected in the accounts, every debit entry must have a corresponding credit entry or a set of credit entries and vice versa. The transactions affecting these accounts are posted in the account as debit entry and credit entry to complete the double entry.

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Kavungya answered the question on August 17, 2021 at 07:26

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