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.
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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 6. Business writes a check to make a payment on its bank loan.
Debit an Asset and Credit an AssetIncreases an Asset / Decreases an Asset
Debit an Asset and Credit RevenueIncreases an Asset / Increases Revenue (Increases Equity)
Debit an Asset and Credit LiabilitiesIncreases an Asset / Increases Liabilities
Debit an Asset and Credit Owner's EquityIncreases an Asset / Increases Owner's Equity
Debit a Liability and Credit an AssetDecreases a Liability / Decreases an Asset
Debit Draw and Credit an AssetIncreases a Draw (Reduces Equity) / Decreases an Asset
Debit an Expense and Credit a LiabilityIncreases an Expense (Reduces Equity) / Increases a Liability
Debit an Expense and Credit an AssetIncreases an Expense (Reduces Equity) / Decreases an Asset
Transaction 7. The business buys products (assume the business uses the perpetual inventory system) to sell to its customers from a supplier that grants the business 30 day payment terms.
Debit an Asset and Credit an AssetIncreases an Asset / Decreases an Asset
Debit an Asset and Credit RevenueIncreases an Asset / Increases Revenue (Increases Equity)
Debit an Asset and Credit LiabilitiesIncreases an Asset / Increases Liabilities
Debit an Asset and Credit Owner's EquityIncreases an Asset / Increases Owner's Equity
Debit a Liability and Credit an AssetDecreases a Liability / Decreases an Asset
Debit Draw and Credit an AssetIncreases a Draw (Reduces Equity) / Decreases an Asset
Debit an Expense and Credit a LiabilityIncreases an Expense (Reduces Equity) / Increases a Liability
Debit an Expense and Credit an AssetIncreases an Expense (Reduces Equity) / Decreases an Asset
Transaction 8. Bank sends the business a statement for the interest due on the bank's loan and grants the business 10 days until the payment is due.
Debit an Asset and Credit an AssetIncreases an Asset / Decreases an Asset
Debit an Asset and Credit RevenueIncreases an Asset / Increases Revenue (Increases Equity)
Debit an Asset and Credit LiabilitiesIncreases an Asset / Increases Liabilities
Debit an Asset and Credit Owner's EquityIncreases an Asset / Increases Owner's Equity
Debit a Liability and Credit an AssetDecreases a Liability / Decreases an Asset
Debit Draw and Credit an AssetIncreases a Draw (Reduces Equity) / Decreases an Asset
Debit an Expense and Credit a LiabilityIncreases an Expense (Reduces Equity) / Increases a Liability
Debit an Expense and Credit an AssetIncreases an Expense (Reduces Equity) / Decreases an Asset
Transaction 9. The business makes a cash sale to a customer.
Debit an Asset and Credit an AssetIncreases an Asset / Decreases an Asset
Debit an Asset and Credit RevenueIncreases an Asset / Increases Revenue (Increases Equity)
Debit an Asset and Credit LiabilitiesIncreases an Asset / Increases Liabilities
Debit an Asset and Credit Owner's EquityIncreases an Asset / Increases Owner's Equity
Debit a Liability and Credit an AssetDecreases a Liability / Decreases an Asset
Debit Draw and Credit an AssetIncreases a Draw (Reduces Equity) / Decreases an Asset
Debit an Expense and Credit a LiabilityIncreases an Expense (Reduces Equity) / Increases a Liability
Debit an Expense and Credit an AssetIncreases an Expense (Reduces Equity) / Decreases an Asset
Transaction 10. The business makes a charge sale to a customer and grants the customer 10 days to make their payment.
Debit an Asset and Credit an AssetIncreases an Asset / Decreases an Asset
Debit an Asset and Credit RevenueIncreases an Asset / Increases Revenue (Increases Equity)
Debit an Asset and Credit LiabilitiesIncreases an Asset / Increases Liabilities
Debit an Asset and Credit Owner's EquityIncreases an Asset / Increases Owner's Equity
Debit a Liability and Credit an AssetDecreases a Liability / Decreases an Asset
Debit Draw and Credit an AssetIncreases a Draw (Reduces Equity) / Decreases an Asset
Debit an Expense and Credit a LiabilityIncreases an Expense (Reduces Equity) / Increases a Liability
Debit an Expense and Credit an AssetIncreases an Expense (Reduces Equity) / Decreases an Asset

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