Question

State the rules of debit and credit of assets?​

Answer 1

Answer:

Asset accounts, a debit increases the balance and a credit decreases the balance. Liability accounts, a debit decreases the balance and a credit increases the balance. Equity accounts, a debit decreases the balance and a credit increases the balance.

Answer 2

Answer:

The following are the rules of debit and credit which guide the system of accounts, they are known as the Golden Rules of accountancy:

• First: Debit what comes in, Credit what goes out.
• Second: Debit all expenses and losses, Credit all incomes and gains.
• Third: Debit the receiver, Credit the giver.