Introduction to Double Entry Accounting - 4th POA

In every transaction, "the giving of value and the receiving of value occurs".

Double entry means 'writing a transaction two times only'.

We record a transaction two times on the debit side and two times on the credit side.

The left hand side of the account means credit and the right hand side means debit.

The double entry rule for assets is to debit when there's an increase in the value of assets and credit when there's a decrease in the value of assets.

The double entry rule for liabilities state the following: debit to record an increase, credit to record a decrease.

The double entry rule for income states that increases are debited and decreases are credited.

The double entry rule for capital states: credit to record an increase and debit to record an decrease.

Expenses and assets carry the same double entry rules; debit when there is an increase and credit when there is a decrease.

To debit means writing on the left hand side of an account; to credit means writing on the right hand side of the account.