Professional Documents
Culture Documents
Recording
Process:
Account, Debit, Credit
Muhardi Saputra.
Information System Department
2019
Learning Objective
An account can be
illustrated in a T-
account form.
Debit and Credit
⚫ The terms debit and credit mean left and right, respectively.
⚫ The act of entering an amount on the left side of an account is
called debiting the account and making an entry on the right
side is crediting the account.
⚫ When the debit amounts exceed the credits, an account has a
debit balance; when the reverse is true, the account has a
credit balance.
Debiting An Account
Cash
15,000
Cash
7,000
Cash
15,000 7,000
8,000
Normal Balance
◆ Liabilities – Credits should
Chapter
exceed debits.
3-23
Normal Balance
Chapter
3-24
Debit and Credit Balance
If the sum of Debit entries are greater than the sum of Credit
entries, the account will have a debit balance.
Account Name
Debit / Dr. Credit / Cr.
Balance $15,000
Debit and Credit
If the sum of Credit entries are greater than the sum of Debit
entries, the account will have a credit balance.
Account Name
Debit / Dr. Credit / Cr.
Balance $1,000
Tabular Summary Compared
to Account Form
Tabular Summary Account Form
Cash Cash
$15,000 Debit Credit
- 7,000 15,000 7,000
1,200 1,200 600
1,500 1,500 900
- 600 600 200
- 900 250
- 200 1,300
- 250
600
- 1,300
Balance 8,050
$8,050
Expanded Basic Equation And
Debit/Credit Rules And Effects
Owner’s Owner’s
Assets = Liabilities + -
Capital Drawings
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
+ - - + - + + -
+ Revenues - Expenses