Explain debits and credits and their role in the accounting system. Solution Under double entry system recording the transactions atleast two accounts that is debit and credit. debit items are posting in left side of the ledger account and credit items are posting in right side of the ledger account. debit items are increases assets and expenses and decreases liabilities and revenues,credit items are increases liabilities and revenues and decreases assets and expenses..

1. Explain debits and credits and their role in the accounting system.
Solution
Under double entry system recording the transactions atleast two accounts that is debit and
credit. debit items are posting in left side of the ledger account and credit items are posting in
right side of the ledger account. debit items are increases assets and expenses and decreases
liabilities and revenues,credit items are increases liabilities and revenues and decreases assets
and expenses.