Basic Rules of Debit. and Credit.

1. Rules of Debit and Credit
M KAMRAN BASHIR

2. Basic Five Classification of Accounts.
Debit Balance
1. Accounts OF Assets.
2. Accounts OF Expenses.
Credit Balance.
1. Accounts OF Liabilities
2. Accounts of Owner Equity.
3. Accounts Revenues.

3. Rules of Debit and Credit of Assets.
 Increase in a n asset is record on the left side
or debit side of Accounts.
 Decrease in a assets is recorded on the right
side or credit side of the Accounts.

4. Purchase furniture for Rs .10000 on Cash
Basis.
 Furniture A/c 10000
 Cash A/c 10000

5. Rules of Debit and Credit of Expenses.
 Increase in an Expenses is
record on the left-hand
side or Debit side of
Accounts.
 Decrease in a Expenses is
recorded on the right side
or credit side of the
Accounts.

6. Wages Rs. 6000 paid to workers..
Wages Accounts 6000
 Cash A/c 6000

7. Rules of Debit and Credit of
Liabilities.
 Decrease in Liabilities is record on the debit
side of Accounts.
 Increase in a Liabilities is recorded on the
credit side of the Accounts.

8. Rules of Dr. And Cr. Of Liabilities.
Furniture Purchase Rs. 5000 From Asif
 Furniture A/c 5000
 Asif A/c 5000 (Increase)
 When Amount of Liability Paid to Asif .
 Asif A/c 5000 (decrease)
 Cash Account 5000

9. When owner Equity Increase Its is
Credited.
 Mr. Ahmad Started Business For Rs.
500,000
 Cash A/c 500,000
 Ahmad Capital A/c 500,000

10. Rules Of Dr. and Cr. Of Revenue.
 When revenue Increase Its is Credit.
 When Revenue are decrease Its is Debited
 Goods sold for Rs. 50,000 .
 Cash A/c 50,000
Sales Accounts 50,000