<!-- WP QUADS Content Ad Plugin v. 2.0.95 -->
<div class="quads-location quads-ad1" id="quads-ad1" style="float:left;margin:0px 0px 0px 0;">

</div>
<p align="justify">Debits and credits are the accounting terminologies which are used to describe the increase or decrease in the financial components. Any movement in these components can be specified by using the term debits and credits. In T-accounts, left column represents debits while right column represents credits.</p>
<p align="justify"><img title="1-t-account" src="http://www.soopertutorials.com/wp-content/uploads/2009/05/1-t-account.jpg" alt="1-t-account" width="310" height="80" /></p>
<p align="justify"><strong> </strong><strong>Rules of Debits and Credits</strong></p>
<p>There are five components of financial statements<br />
• Asset<br />
• Liability<br />
• Capital<br />
• Expense<br />
• Revenue</p>
<p align="justify">Each Component has its own criteria for debits and credits. Sometimes students may face a general problem in specifying when to use debit or credit terminology so to tackle these problems there is a general rule. See the Table A below</p>
<p align="justify"><img title="2-account-types" src="http://www.soopertutorials.com/wp-content/uploads/2009/05/2-account-types.jpg" alt="2-account-types" width="500" height="183" /></p>
<!-- WP QUADS Content Ad Plugin v. 2.0.95 -->
<div class="quads-location quads-ad2" id="quads-ad2" style="float:none;margin:0px 0 0px 0;text-align:center;">

</div>

<p><strong> </strong>In table you can notice when there is increase in asset and expense they are debited and when there is a decrease they are credited. On the other hand Liability, Capital and Revenue, when they are increased they are credited and debited when decreased.</p>
<p><strong>Illustration: 1</strong>
<!-- WP QUADS Content Ad Plugin v. 2.0.95 -->
<div class="quads-location quads-ad3" id="quads-ad3" style="float:none;margin:0px;">

</div>


Page: 1 2
Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…
The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…
The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…
The purpose of this research paper is to develop a marketing plan for the Thomson…
1. As applicable to other department managers, a human resources manager invigilates the departments and…
The purpose of the present article is to formulate a work allocation flow chart of…