Question

Decrease of Assets and Liabilities

Answer 1

According to Modern Rules for Debit and Credit :-

• Credit the Decrease in Assets and
• Debit the Decrease in Liabilities.

Additional Information :-

Modern Rules of Debit and Credit :

Capital Account :

• Debit the Decrease in Capital and
• Credit the Increase in Capital.

Liabilities Account :

• Debit the Decrease in Liabilities and
• Credit the Increase in Liabilities.

Assets Account :

• Debit the Increase in Assets and
• Credit the Decrease in Assets.

Expenses and Losses Account :

• Debit the Increase in Expenses/Losses and
• Credit the Decrease in Expenses/Losses.

Revenue/Income/Gains Account :

• Debit the Decrease in Revenue/Income/Gains and
• Credit to the Increase in Revenue/Income/Gains.

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