TransactionIncreased/Decreased Rule of debit &credit Accounting

Entry

Business purchased office furniture for $3000. ↑Furniture (Assets)

↓cash (Assets) • Increase in assets is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Furniture $3000.

Cr. Cash $3000.

Business took loan from bank amounting $35000. ↑Cash (Assets)

↑loan (liability) • Increase in assets is recorded as debit.

• Increase in liability is recorded as credit. Dr. Cash $35000.

Cr. Loan $35000.

Business purchased goods from Mr. Khan on credit amounting $1700.
↑Goods (Expense)

↑Mr. Khan(liability)

• Increase in expense is recorded as debit.

• Increase in liability is recorded as credit. Dr.Goods $1700.

Cr. Mr. Khan $1700.

Business sold goods for $4000.↑Cash(Assets)

↑Sold goods(Income) • Increase in assets is recorded as debit.

• Increase in income is recorded as credit. Dr. Cash $4000.

Cr. Sold goods $4000.

Business paid shop rent amounting $1000.↑Rent(Expense)

↓Cash(Assets) • Increase in expense is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Rent $1000.

Cr. Cash $1000.

Business paid $1700 to its creditor Mr. Khan. ↓Mr. Khan(liability)

↓Cash(Assets) • Decrease in liability is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Mr. Khan $1700.

Cr. Cash $1700.

Business sold goods on credit to Mr. Ali amounting $10000. ↑Receivable

cash(Assets)

↑Sold goods(Income) • Increase in assets is recorded as debit.

• Increase in income is recorded as credit. Dr. Receivable cash

$10000.

Cr. Sold goods $10000.

Business received cash from its Debtor Mr. Ali amounting $10000.
↑Cash(Assets)

↓Receivable cash(Assets) • Increase in assets is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Cash $10000.

Cr. Receivable cash $10000.

Business paid electricity expenses amounting $500. ↑Electricity Exp
(Expense).

↓Cash(Assets) • Increase in expense is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Electricity Exp $500.

Cr. Cash $500.

Business paid interest expense amounting $500. ↑Interest Exp (Expense).

↓Cash(Assets)

• Increase in expense is recorded as debit.

• Decrease in assets is recorded as credit. Dr. Interest Exp $500.

Cr. Cash $500.

Business man invested $50000 into his business. ↑Cash(Assets)

↓Capital(Capital) • Increase in assets is recorded as debit.

• Increase in capital is recorded as credit. Dr. Cash $50000.

Cr. Capital $5000.