Rules of debit and credit
The following table summarizes the rules of debit and credit. For each of the items (a) through (l), indicate whether the proper answer is a debit or a credit.
|
Increase |
Decrease |
Normal Balance |
|
|
Balance sheet accounts: |
|||
|
Asset |
(a) |
(b) |
Debit |
|
Liability |
(c) |
Debit |
(d) |
|
Stockholders’ |
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|
Capital Stock |
Credit |
(e) |
(f ) |
|
Retained Earnings |
(g) |
(h) |
Credit |
|
Dividends |
Debit |
Credit |
(i) |
|
Income statement |
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|
Revenue |
(j) |
(k) |
Credit |
|
Expense |
(l) |
Credit |
Debit |