Financial Accounting Debit/Credit Rules

What side is the debit on a T- account?

Left

What side is the credit on a T- account?

Right

What is the T-account?

My friend

Asset are _____ by debits

Increased

Assets are _______ by credits

Decreased

Liabilities are ____ by debits

decreased

Liabilities are ______ by credits

Increased

Equity accounts are ______ by debit

Decreased

Equity accounts are ______ by credits

Increased

Revenue accounts are _____by debits

Decreased

Revenue accounts are _______by credits

Increased

Expense accounts are _______ by debits

Increased

Expense accounts are ________ by credits

Decreased

Should the sum of debits equal the sun of the credits for that specific transaction?

Yes

What do record first in transactions?

Debits

What do you record second in transactions?

Credits