Question

Can somebody please explain me these rules what is increasing and decreasing?

rules of Debit & Credit

Increase in Expense is Debit (Dr.)
Decrease in expens is Credit (Cr.)
Increase in Income is Credit (Cr.)
Decrease in Income is Debit (Dr.)

Answer 1

@mani_jha will help u man!

Answer 2

THE DEBIT AND CREDIT RULES



Type of Account To Debit the Account To Credit the Account
1. Personal When the person whose in whose name the account is kept is in debt to us When the person in whose name the account is kept is in credit with us
2. Real When the account received money/the equivalent When the account gives us money/the equivalent
3. Profit and Loss Any account that ends with the words 'Expense Accounts'. Any account that ends with the words 'Revenue Account'


Comprehensive Example:

1. 1.1.xx We bought goods from Waterman for an overall sum of $ 1,000 (Invoice No. 123).
2. 2.1.xx We sold part of the goods for $ 600 cash (Receipt No. 1950)
3. 3.1.xx We paid $ 200 cash for electricity expenses (Expense Voucher 001).
4. 4.1.xx We bought a store from Max for $ 20,000 (Invoice No. 953).
5. 5,1,xx We rented the store out for $ 700 cash (Invoice No.001)


We will practice making the bookkeeping records that are the subject of the above table (Comment: In the first part of the solution, the records will be presented in the form of a T account, and they will be presented textually in the second part. This will be explained more fully later on.

T ACCOUNTS



Goods Account
Debit Credit
(1) 1,000 600 (2)

Waterman Account
Debit Credit
1,000 (1)
Cash Account
Debit Credit
(2) 600
(5) 700 200 (3)


Electricity Expe nses Account
Debit Credit
(3) 200
Store Account
Debit Credit
(4) 20,000

Max Account
Debit Credit
20,000 (4)
Store Ren tal Account
Debit Credit
700 (5)

Answer 3

Thanks