Question

Classify the following accounts on the basis of modern approach and also state whether

they should be debited or credited:

A. Increase in machinery

B. Increase in interest received

C. Increase in debtors

D. Decrease in the debtors

E. Increase in creditors

F. Decrease in creditors

G. Increase in salary paid

H. Decrease in wages outstanding.​

Answer 1

Answer:

1. Increase in Asset ---- to be debited

2. Increase in Income --- to he Credited

3. Increase in Asset ----- to be debited

4. Decrease in Asset ---- to be credited

5. Increase in liability ---- to be credited

6. Decrease in liability ---- to be debited

7. increase in expense --- to be debited

8. Decrease in liability --- to be debited