Debit- Where the Claim of company Increases or

Claim on company Decreases

Credit- Where the Claim of company Decreases or
Claim on company Increases
It is totally logical and can be used for any transaction and any account. Following are some examples

E.g. Owner brings in Capital.

Cash comes in , company gets higher cash , claim of company increases hence Debit cash A/c.
Whereas the claim of the owner on the company also increases hence Credit owners' capital A/c

Wages were paid by cash,

Since, the wages are paid the claim of the company over the employee increases hence Debit wages A/c
simultaneously, the cash is going out, so the Claim of the Company decreased Hence Credit Cash A/c

Sales on credit
The claim of the company in form of money that should come in increases hence Debit A/c Receivable
whereas, the company is no more possessing the Goods, Claim of company decreased hence Credit Sales A/c

• I used the above logic for identifying the Dr/Cr account. and could apply to all the transactions with ease
• found it very useful, in case there is no background in accounting
• Please check if it is useful to you as well. and leave it if sounds confusing.
[11:42, 20/09/2021] Vaibhav Ugvekar: I used the above logic for
identifying the Dr/Cr account. and could apply to all the
transactions with ease.[11:43, 20/09/2021] Vaibhav Ugvekar:
found it very useful, if there si no background in accounting.
[11:44, 20/09/2021] Vaibhav Ugvekar: Please check if it is
useful to you as well. and leave it if sounds confusing.