Debit and credit
Every account has two sides, and every transaction is posted twice. This is the rule the rest of bookkeeping stands on.
In this room: 3 tasks, 8 questions
- Two sides to every account3 questions
- Money in3 questions
- Money out2 questions
Every account has two sides. Debit is the left side. Credit is the right side.
Which side makes an account go up depends on what kind of account it is.
- Assets and expenses
- go up on the debit side
- Liabilities, capital and income
- go up on the credit side
To make an account go down, post to the opposite side.
Answer the questions below
2 more questions follow in this task.
Every transaction is posted twice: once on the debit side of one account, and once on the credit side of another. The two amounts always match. That is double entry.
When money comes in, Bank goes up. Bank is an asset, so it is debited. The other account says where the money came from.
Answer the questions below
2 more questions follow in this task.
When money goes out, Bank goes down. An asset goes down on the credit side.
The other account says what the money was spent on. That account is debited.
Answer the questions below
1 more question follows in this task.