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.

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 11. Business receives a payment from a customer who charged his purchase and had 10 days to pay.
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 12. Owner writes a draw check to be used for his/her personal use.
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 13. Business writes checks to pay their employees.
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 14. Business writes a check to pay a creditor that they bought products from and were granted payment terms of 30 days.
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 15. Business receives and records a utility bill that has payment terms of 10 days.
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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