RULES OF DEBIT AND CREDIT IN ACCOUNTS
Before knowing the rules of Debit and Credit in Accounts first we need to know type of
accounts.
TYPE OF ACCOUNTS
Assets Liabilities Income Expense Capital
ASSETS
Assets are those who have my property / or the life of thing have more than one year or if I
have to take money from someone.
E.g. Furniture/ Laptop/ Building/ Land all these have life more than one year.
Type of Assets
1. Bank Deposits 2. Investment 3. Good Will
4. Stock 5. Trademark 6. Furniture
7. Vehicle 8. Debtor 9. Computer
10. Cash 11. Copyright 12. Building
11. Machinery 12. Gold 13. Land
LIABILITIES
Liabilities are those who I have to pay to someone. E.g. If I have borrow the money or
anything for some time which I need to pay back to Bank/ Friend or some other person is
called Liabilities.
1. Bank Loan 2. Rent Payable
3. Outstanding Salary 4. Creditors
INCOME
If I am getting profit / salary/ Interest like (FD/ Saving/ Current account)
Before knowing the rules of Debit and Credit in Accounts first we need to know type of
accounts.
TYPE OF ACCOUNTS
Assets Liabilities Income Expense Capital
ASSETS
Assets are those who have my property / or the life of thing have more than one year or if I
have to take money from someone.
E.g. Furniture/ Laptop/ Building/ Land all these have life more than one year.
Type of Assets
1. Bank Deposits 2. Investment 3. Good Will
4. Stock 5. Trademark 6. Furniture
7. Vehicle 8. Debtor 9. Computer
10. Cash 11. Copyright 12. Building
11. Machinery 12. Gold 13. Land
LIABILITIES
Liabilities are those who I have to pay to someone. E.g. If I have borrow the money or
anything for some time which I need to pay back to Bank/ Friend or some other person is
called Liabilities.
1. Bank Loan 2. Rent Payable
3. Outstanding Salary 4. Creditors
INCOME
If I am getting profit / salary/ Interest like (FD/ Saving/ Current account)
