Transaction types

Asset and Equity and

Asset Asset and equity
liabilities liabilities
– Purchasing an asset – Contribution of – Purchasing an – Expenses on
for cash capital asset for credit credit
– Receipt of payment – Drawings by owner – Payment made to
from a debtor – Cash income a creditor
– Investing of cash – Credit income – Entering into a
– Transfer from – Cash expenses loan agreement
investment to bank
account

Dr Asset Cr Dr Asset Cr Dr Asset Dr Expense Cr

Cr
Increase Decrease Increase Decrease Increase Decrease Increase Decrease

Dr Equity Dr Liabilities Cr
Cr
Decrease Increase Decrease Increase

Dr Income
Cr
Decrease Increase

Dr Expense
Cr
Increase Decrease

Account types