EX 2-4 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.
|
d |
Increase |
Decrease |
Normal Balance |
|
Balance sheet accounts: |
|||
|
Asset |
(a) |
Credit |
(b) |
|
Liability |
Credit |
(c) |
(d) |
|
Owner’s equity: |
|||
|
Capital |
Credit |
(e) |
(f ) |
|
Drawing |
(g) |
(h) |
(i) |
|
Income statement accounts: |
|||
|
Revenue |
Credit |
(j) |
(k) |
|
Expense |
(l) |
Credit |
Debit |