Accounting debit credit chart10/31/2022 ![]() ![]() A sale is considered Revenue or Income, which is shown as REVENUE on the chart. The client is buying on account or paying later, which makes it an Accounts Receivable, which is an asset. In this entry we have an increase and a decrease and in accounting a debit and a credit leaving you a balanced entry.Įxample #2: Selling a Good or Product, assuming the purchaser has an account and is therefore paying for it later. When an asset decreases, it is a Credit entry. The other side: we are probably paying by cheque, therefore the bank is also involved, bank is an ASSET, in the top section of the chart. Let’s follow the chart, rent is an expense, go to the last section of the chart EXPENSES and see that when an expense increases, it is a Debit entry. #Accounting debit credit chart downloadYou can download this Debit/Credit chart in two formats: ![]() Please note the GST noted is now known as HST. Good luck, but don’t be shy to ask someone for help if needed. (There are some examples provide below the chart.) Just try and remember the bank is always the opposite. HINT: an entry can have two increases, two decreases or an increase and a decrease, as long as the debits and credits equal in dollar value, the transaction will balance.Īnd finally, don’t try and compare the debits and credits with what is showing on your bank statement, which will definitely confuse the issue, because when you put money in the bank, the bank statement will show this as a credit, whereas in your books, this increase to the bank is actually a debit. Therefore use the chart provided below as a guide. Depending on the type of account, an increase can be a debit or a credit. First things first, create a list of accounts you will need, known in accounting as the Chart of Accounts. The general idea is to consider each transaction (or entry) as amounts that will either increase or decrease specific accounts, ie your bank, revenue and expense, etc. When a transaction occurs, at least two accounts must be involved (three accounts if you’re dealing with HST). It’s called double-entry bookkeeping for a reason. ![]() When untrained people attempt their own bookkeeping, it’s usually the Debits and Credits that mess them up. ![]()
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