Debits and Credits

1
Debits and Credits

• Rather than say left accountants say debit
• Rather than say right accountants say credit

2
Now! For the and -

• To add to an asset account use debit
• To subtract from an asset account use credit
• To add to a liability or owners equity use a
  credit
• To subtract from a liability or owners equity use
  a debit

3
Examples justa fo you (thats Italian)

• Borrow money from the bank
• Cash 100,000
• Note Payable 100,000
• Pay off the loan from the bank
• Note Payable 100,000
• Cash 100,000

4
And few tricky ones

• Pay workers wages
• Wage expense 50,000
• Cash 50,000\
• Make a cash sale
• Cash 250
• Sales Revenue 250