Debits

1
Debits Credits?

• Who needs them?
• What are they anyway?

2
Debits Credits?

• Debit The left-hand side of any account. A
  number entered on the left side of any account is
  said to be debited to an account.
• Credit The right-hand side of any account. A
  number entered on the right side of any account
  is said to be credited to an account.

3
Debits Credits? Rules! (Slater, 2002, p. 41)
4
Debits Credits? T Accounts

• T Account A skeleton version of a standard
  account, used for demonstration purposes.

Account Title
Left side Debit (Dr.)
Right side Credit (Cr.)
5
Debits Credits?

• Assets Liabilities Owners
  Equity

Debit Inc
Credit - Dec
Debit - Dec
Credit Inc
Debit - Dec
Credit Inc
Revenue Expense
Credit Inc
Debit - Dec
Credit - Inc
Debit Inc