I am taking the secound part of an accouting class and I kind of forgot the basic of accounting. What is the easiest way to remember what should be creditied and what should be debited? Any other basic pointers that you have that would help me remember. Thanks in advance :)
Answers:
Debit - Increases assets and expenses
Credit - Increases liabilities, equity, and revenue
Assets = liabilities + equity
Net income = revenue - expenses
If you just memorize the four lines above, it will help a lot.
When doing journal entries, just start with the easiest side and then figure out the more difficult side. For example, if you sell an item for cash, you know you debit cash. Then you just have to figure out what you credit (which would be sales). If you pay for an item you bought on account, you know you credit cash. Then you have to figure out the debit (which would be accounts payable).
Good luck.
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