Debit & Credit

Recap

Here are some of the highlights from this major topic:

Debit means left.
Credit means right.
Every transaction affects two accounts or more.
At least one account will be debited and at least one account will be credited.
The total of the amount(s) entered as debits must equal the total of the amount(s) entered as credits.
When cash is received, debit Cash.
When cash is paid out, credit Cash.
To increase an asset, debit the asset account.
To increase a liability, credit the liability account.
To increase owner's equity, credit an owner's equity account.
To increase revenues, credit the revenues account
To increase expenses, debit the expense account