Sales & Marketing Alignment: How to Synergize for Success
Debit and credit accounting for transactions
1. Debit , Credit accounting transaction for recording. When we
talk double entry system two ways of recording I-e single
entry system a (one side of transaction being recorded) and
double entry system (Transaction into two ways)
Two aspect of any transaction :
For example:
Buy a pen ( cash is going out and asset is coming in)
to record this activity debit and credit format is used.
2. According to Bookish accounting there are three accounts.
1. Personal accounts
2. Real accounts
3. Nominal accounts
Personal account:
coming in -> Debit
Going out -> Credit
Real account:
Increased, established thing -> Debit
Decreased -> Credit
3. Nominal account:
Expense -> Debit
Income -> Credit
According to profession knowledge of accounting:
Three aspects of financial statement
Balance sheet statement
Asset side , liability side , Equity
In financial position:
Asset -> Debit
Liability -> Credit
Equity -> Credit
In profit and loss statement
Incomes -> Credit
Expense -> Debit
4. Selling a fixed asset in a normal transaction type,
It is a different type of transaction. Fixed asset is
develop and for some company this fixed asset may
be credit trade items.
When you transaction of fixed asset:
Fixed asset _ going out ( Credit)
In returns ( cash -> coming in ) Debit
