Debits and credits: bookkeeping entries

Debit identifies a posting side; it does not necessarily mean a loss or withdrawal. [1][3]

Credit identifies the opposite posting side, not automatically income. [1][3]

Every properly recorded journal entry has offsetting postings of equal total value. [1][3]

The equation stays balanced after each journal entry. [1][3]

A teaching model showing how operating activity changes equity. [1][3]

A cash receipt increases Cash through a debit posting. [1][3]

New amounts owed typically increase Accounts Payable by credit. [1][3]

A new owner investment usually increases equity by credit. [1][3]

Revenue recognition increases the revenue account on its normal side. [1][3]

Recognized expenses increase on the debit side, normally reducing equity. [1][3]

More cash is posted as debit; cash payments are credits to Cash. [1]

Amounts billed but uncollected increase on debit. [1]

Purchases not yet expensed may initially be recorded as an asset. [1]

Equipment acquired for use generally increases through a debit. [1]

Unpaid supplier obligations increase on credit. [1]

Loan principal owed increases on the credit side. [1]

Customer advances are liabilities until performance obligations are met. [1]

Capital issued in a corporation increases equity. [1]

Revenue earned increases on credit. [1]

Rent recognized as an expense increases on debit. [1]

Dividends reduce owners' equity, but are not operating expenses. [1]

Both assets and equity increase by the same amount. [2]

Records services already provided and immediately paid. [2]

Revenue earned now; cash will be collected later. [2]

Converts a receivable to cash without recognizing revenue twice. [2]

Acquires an asset and creates an obligation. [2]

Settles a recorded payable and reduces cash. [2]

Purchases supplies as an asset, assuming not immediately expensed. [2]

Transfers consumed supplies from asset to expense. [2]

Cash payment recognizes the current period's rent expense. [2]

Records incurred wages before cash payment. [2]

Loan proceeds create cash and a liability, not revenue. [2]

A shareholder distribution is not an operating expense. [2]

Cash before services are delivered creates a liability. [2]

Recognizes the revenue when the covered work is completed. [2]

An unequal entry is not a valid double-entry journal record. [1][2]

Whether debit or credit increases depends on the account type. [1][2]

Used for ordinary asset and expense accounts with debit-normal balances. [1][2]

Used for ordinary liabilities, equity and revenue accounts. [1][2]

The trial balance checks total equality but does not detect every error. [1][2]

Equal totals are necessary but do not prove classification or timing is right. [1][2]

Financial statement income differs from every cash receipt. [1][2]

Recognize revenue at earning under accrual accounting. [1][2]

The recorded period depends on accounting basis and transaction facts. [1][2]

Reconcile entries against invoices, receipts and bank activity before posting. [1][2]