The treatment of expenses is the same as the treatment of assets. Increases in expenses results in debit entries to the appropriate expense account, while decreases (such as refunds for overpayment of an electricity bill) result in credit entries to those same accounts. Revenue is treated the same as liabilities. Increases in revenue are credited to the appropriate revenue accounts, while decrease are debited to the same accounts.

1. THE DOUBLE ENTRY
SYSTEM FOR
EXPENSES AND REVENUES

2. Revenue:
The term revenue means the sales value of goods and services that have been
supplied to customer.
Expenses:
The term expense means the cost value of all the assets that have been used up
to obtain those revenues.
Profit:
Profit means the amount by which revenue is greater than expenses for a set of
transactions.

3. Debit/ Credit
Asset involve expenditure by the business and are shown as debit entries. Expenses
also involve expenditure by the business and should therefore, also be debit entries.
Why ?
Because assets and expenses must ultimately be paid for. This payment involves a
credit to the bank account (or to the cash account) so the original entry in the asset
account or in the expense account must be debit.
Even where an expense is incurred on credit, the creditor must eventually be paid.
The first entry will be to credit the supplier (i.e creditor's) account and debit the
expense account.

4. The treatment of expenses is the same as the treatment of assets. Increases
in expenses results in debit entries to the appropriate expense account,
while decreases (such as refunds for overpayment of an electricity bill) result
in credit entries to those same accounts.
Revenue is treated the same as liabilities. Increases in revenue are credited
to the appropriate revenue accounts, while decrease are debited to the same
accounts.
Debit/ Credit

5. Double entries for expense and revenue

11. Thank You