Having trouble understanding credit and debit, I know the definition of the two

Question

Having trouble understanding credit and debit, I know the definition of the two but not the application.


References Mailings Review View Help Tell me what you want to do Debit or Credit 1 An increase in Salaries and Wages Payable Debit 2. A decrease in Accounts Receibable. Credit Credit An decrease in Prepaid Insurance. 4. An decrease in Owner's Capital 5. 3. Debit A increase in Office Supplies. 6. An increase in Owner's Drawings. 7. An increase in Service Revenue. 8. A increase in Accounts Payable. Debit Debit Credit Credit Debit Credit 9. An increase in Rent Expense. 10. A decrease in Store Equipment 11. An Increase in Cash Debit 12. An decrease in Retained Eanings 13. A decrease in Uneamed Revenue 14. A increase in Notes Receivable 15. An increase in Sales Tax Payable 16. An increase in Travel Expense 17. An increase in Common Stock 18 An increase in Merchandise Invedntony 19. A increase in Stock Investments 20. An decrease in Dividends Payable

Explanation / Answer

Answers

Liabilities account if

1

Increased

are credited

2

Decreased

are debited

Assets account, if

1

Increased

are debited

2

Decreased

are credited

Owner's Capital / Common Stock account, if

1

Increased

are credited

2

Decreased

are debited

Owner's Withdrawals - Drawings account, if

1

Increased

are debited

2

Decreased

are credited

Expense accounts, if

1

Increased

are debited

2

Decreased

are credited

Revenues account, if

1

Increased

are credited

2

Decreased

are debited

Account nature

If Increased, are

If decreased, are

Revenues

Credited

Debited

Expenses

Debited

Credited

Assets

Debited

Credited

Liabilities

Credited

Debited

Gain

Credited

Debited

Loss

Debited

Credited

Owner's Capital/Common Stock/Retained earings

Credited

Debited

Owner's Withdrawals

Debited

Credited

Question 1

Nature of account

Increase/Decrease

Debit or Credit - ANSWER

1

Liabilities

Increase

Credit

2

Assets

Decrease

Credit

3

Assets

Decrease

Credit

4

Capital

Decrease

Debit

5

Assets

Increase

Debit

6

Drawings

Increase

Debit

7

Revenue

Increase

Credit

8

Liabilities

Increase

Credit

9

Expenses

Increase

Debit

10

Assets

Decrease

Credit

11

Assets

Increase

Debit

12

Retained earning (Equity)

Decrease

Debit

13

Liabilities

Decrease

Debit

14

Assets

Increase

Debit

15

Liabilities

Increase

Credit

16

Expenses

Increase

Debit

17

Common Stock

Increase

Credit

18

Assets

Increase

Debit

19

Assets

Increase

Debit

20

Liabilities

Decrease

Debit

Liabilities account if

1

Increased

are credited

2

Decreased

are debited

Assets account, if

1

Increased

are debited

2

Decreased

are credited

Owner's Capital / Common Stock account, if

1

Increased

are credited

2

Decreased

are debited

Owner's Withdrawals - Drawings account, if

1

Increased

are debited

2

Decreased

are credited

Expense accounts, if

1

Increased

are debited

2

Decreased

are credited

Revenues account, if

1

Increased

are credited

2

Decreased

are debited

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