Debit & credit entry

Business transactions are events that have a monetary impact on the financial statements of an organization. When accounting for these transactions, we record numbers in two accounts, where the debit column is on the left and the credit column is on the right.

*debit entry

A debit entry is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.

*The following entry will be debit side

1. Increase asset(current & non current asset)

2. Increase expense(salary/wages/repair/sundry expense/stationary/
purchase products etc. 

3. Decrease liability(current & non current liability)

4. Decrease equity (capital)

5. Decrease income( sales/ revenue/profit)

6. Loss

7.Drawing


*credit entry

A credit entry is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.

*The following entry will be credit side

1. Decrease  asset (current and non current asset )

2. Decrease expense(salary/wages/repair/sundry expense/stationary/
purchase products etc. 

3. Increase liability(current and non current liability) 

4. Increase equity(capital)

5. Increase income (sales/revenue/profit)