Debits and Credits Used To Record Transactions
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NOTE: Simply place your mouse cursor over the Type Of Account Debited and Credited.
There is no need to click the answer. |
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Type of
Account Debited and Credited |
Effect On Accounting Equation
Assets = Liabilities + Owner's Equity Note:Debit Account Balances on the Left Side of the equation represent increases. Credit Account Balances on the Left Side of the equation represent decreases. Debit Account Balances on the Right Side of the equation represent decreases. Credit Account Balances on the Right Side of the equation represent increases. |
| Transaction 16. Business pays utility bill that was previously recorded as an expense and a liability. | |
| Debit an Asset and Credit an Asset | Increases an Asset / Decreases an Asset |
| Debit an Asset and Credit Revenue | Increases an Asset / Increases Revenue (Increases Equity) |
| Debit an Asset and Credit Liabilities | Increases an Asset / Increases Liabilities |
| Debit an Asset and Credit Owner's Equity | Increases an Asset / Increases Owner's Equity |
| Debit a Liability and Credit an Asset | Decreases a Liability / Decreases an Asset |
| Debit Draw and Credit an Asset | Increases a Draw (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Liability | Increases an Expense (Reduces Equity) / Increases a Liability |
| Debit an Expense and Credit an Asset | Increases an Expense (Reduces Equity) / Decreases an Asset |
| Transaction 17. Business records equipment depreciation. | |
| Debit an Asset and Credit an Asset | Increases an Asset / Decreases an Asset |
| Debit an Asset and Credit Revenue | Increases an Asset / Increases Revenue (Increases Equity) |
| Debit an Asset and Credit Liabilities | Increases an Asset / Increases Liabilities |
| Debit an Asset and Credit Owner's Equity | Increases an Asset / Increases Owner's Equity |
| Debit a Liability and Credit an Asset | Decreases a Liability / Decreases an Asset |
| Debit Draw and Credit an Asset | Increases a Draw (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Liability | Increases an Expense (Reduces Equity) / Increases a Liability |
| Debit an Expense and Credit an Asset | Increases an Expense (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Contra Asset | Increases an Expense (Reduces Equity) / Increases a Contra Asset (Reduces an Asset) |
| Transaction 18. Business prepares and sends a check to pay its utility bill that was previously recorded as an expense and a liability. | |
| Debit an Asset and Credit an Asset | Increases an Asset / Decreases an Asset |
| Debit an Asset and Credit Revenue | Increases an Asset / Increases Revenue (Increases Equity) |
| Debit an Asset and Credit Liabilities | Increases an Asset / Increases Liabilities |
| Debit an Asset and Credit Owner's Equity | Increases an Asset / Increases Owner's Equity |
| Debit a Liability and Credit an Asset | Decreases a Liability / Decreases an Asset |
| Debit Draw and Credit an Asset | Increases a Draw (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Liability | Increases an Expense (Reduces Equity) / Increases a Liability |
| Debit an Expense and Credit an Asset | Increases an Expense (Reduces Equity) / Decreases an Asset |
| Transaction 19. Customer returns a product that was purchased and is given a cash refund. | |
| Debit an Asset and Credit an Asset | Increases an Asset / Decreases an Asset |
| Debit an Asset and Credit Revenue | Increases an Asset / Increases Revenue (Increases Equity) |
| Debit an Asset and Credit Liabilities | Increases an Asset / Increases Liabilities |
| Debit an Asset and Credit Owner's Equity | Increases an Asset / Increases Owner's Equity |
| Debit Contra Revenue and Credit an Asset | Increases Contra Revenue (Reduces Equity) / Decreases an Asset |
| Debit a Liability and Credit an Asset | Decreases a Liability / Decreases an Asset |
| Debit Draw and Credit an Asset | Increases a Draw (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Liability | Increases an Expense (Reduces Equity) / Increases a Liability |
| Debit an Expense and Credit an Asset | Increases an Expense (Reduces Equity) / Decreases an Asset |
| Transaction 20. Business receives a signed contract to sell 500 units of its product a month for six months beginning next month. | |
| Debit an Asset and Credit an Asset | Increases an Asset / Decreases an Asset |
| Debit an Asset and Credit Revenue | Increases an Asset / Increases Revenue (Increases Equity) |
| Debit an Asset and Credit Liabilities | Increases an Asset / Increases Liabilities |
| Debit an Asset and Credit Owner's Equity | Increases an Asset / Increases Owner's Equity |
| Debit a Liability and Credit an Asset | Decreases a Liability / Decreases an Asset |
| Debit Draw and Credit an Asset | Increases a Draw (Reduces Equity) / Decreases an Asset |
| Debit an Expense and Credit a Liability | Increases an Expense (Reduces Equity) / Increases a Liability |
| Debit an Expense and Credit an Asset | Increases an Expense (Reduces Equity) / Decreases an Asset |
| No Entry Required | No Entry Required |
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