Question - What are the rules for debit and credit for different accounts to increase the amount in your business accounts?
Answer -
The rules for debit and credit for different accounts are:
- For a capital account, credit to increase it and debit to decrease it.
- For an asset account, debit to increase it and credit to decrease it.
- For a liability account, credit to increase it and debit to decrease it.
- For an expense account, debit to increase it, and credit to decrease it.
- For an income account, credit to increase it and debit to decrease it.