Questions & Answer

?What is the way to know the debit account from the credit account


In practical life, a debtor is a person who has a debt in favor of the creditor,In accounting, there are two ways to determine the debit account from the credit account when recording the journal entry:

-:Taker and Giving

This method assumes that the debit account is the account that takes, and the credit account is the account that gives

:Determine the nature of the account

Through this method accounts are divided into two accounts, accounts of a debit nature and accounts of a credit nature, The person shall keep that accounts of a debit nature include the accounts of assets and expenses and the account of personal withdrawals. Accounts payable include liabilities, income and capital accounts. These accounts are as follows:

Accounts receivable:-

It is recorded in the debtor party on the increase, and in the creditor party when the shortfall is recorded, it is most likely owed

Accounts payable:-

It is recorded in the debtor party in the shortfall, and in the creditor party, when the balance is increased, it is mostly creditor