 The double entry principles of book keeping states that

for every financial transaction, there should be a debit

entry and a corresponding credit entry. The debit and
credit aspects of a transaction are to be identified
based on principles if double entry system of
accounting.
PRINCIPLE 1 DEBIT CREDIT

ASSETS Increase in Assets Decrease in Assets

In assets account debit entry represents

increase in assets and decrease in
assets.
 PRINCIPLE 2 DEBIT CREDIT

LIABILITY Decrease in liability Increase in liability

In liability account debit entry represents

decrease in liabilities and credit shows
increase in liability.
PRINCIPLE 3 DEBIT CREDIT

CAPITAL Decrease in capital Increase in capital

In capital account debit entry represents

decrease in capital and credit represents
increase in capital.
principle 4 debit credit

REVENUE Decrease in capital Increase in capital

In revenue account debit entry

represents decrease in capital and credit
represents increase in capital.
NAME : HITESH MAKHIJA
STUDENT ID : 201803001