The document discusses the rules of debit and credit in accounting. It defines debit as meaning the left side of an account and credit as meaning the right side of an account. It then provides examples of transactions and whether they are debited or credited according to standard accounting practice. Specifically, it discusses purchases on account or cash, services rendered on account, paying accounts and suppliers, and paying salaries. In all cases, debits increase assets or expenses and credits increase liabilities, revenues, or decrease assets.

1. Rules of Debit and Credit
•Meaning
•Samples
•Accounting
Equation

2. debit
-Means “Left side of
an account.”
-The word Debit is
abbreviated as Dr.

3. Credit
-Means “Right side of
an account.”
-Credit is abbreviated
as Cr.

5. (1) Purchased computer unit for P30,000, on account.
Asset (Office Equipment)
30, 000
Liability (Accounts Payable)
30,000
Increase in Asset is Debited; Increase in Liability is Credited.

6. (2) Purchased computer unit for cash, P30,000
Asset (Cash)
30, 000 30, 000
Asset (Office Equipment)
30,000
30,000
Increase in Asset is Debited; Decrease in onother form of Asset is
Credited.

7. (3)Rendered Service on Account. P20,000
Asset (Accounts Receivable)
20, 000
Revenue (Service Revenue)
20, 000
Increase in Asset is Debited; Increase in Revenue is Credited.

8. (4) Paid the account to supplier in full, P 30,000
Asset (Cash)
30,000
Liability (Accounts Payable)
30,000
Decrease in Asset is Credited; Decrease in Liability is Debited.

9. (5) Paid Salaries of employees. P20,000
Asset (Cash)
20,000
Expense (Salaries Expense)
20,000
Decrease in Asset is Credited; Increase in Expense is Debited.

10. Accounting Equation
Asset = Liabilities + Capital