ACCOUNTING

DEBIT AND CREDIT

DEBIT AND CREDIT are the integral part of the jounalization process

#DEBIT (abbreviation -> Dr)
•decrease in liability or equity
•increase in an asset account

Hindi ibig sabihin na naka debit ang isang account title ay nag increase na

TANDAAN: It has no absolute definition
ang debit (FOUND AT THE LEFT SIDE)

EXAMPLE :
_________________
DEBIT   | CREDIT
               |

Normal balance in debit
(A)-> assets
(W)-> withdrawals
(E)-> expenses

Pag nasa debit itong mga ito, amount will increase; decrease naman pag nasa credit.

Kapag nadagdagan / nag increase ang ASSET, WITHDRAWAL AT EXPENSES ay DEBIT

Pero kapag nabawasan/ nag decrease ang ASSET, WITHDRAWAL AT EXPENSES ay sa CREDIT mo ilalagay

Gets po??

EXAMPLE:
•Asset

Nadagdagan ang asset mo/ nag increase si asset kaya ilalagay mo ito sa DEBIT.

PERO !!

Kapag nabawasan ang asset/ nag decrease si asset, ilalagay mo ito ngayon sa CREDIT.

Ganon din sa withdrawal.
•Withdrawal-> debit

Bakit?

Dahil po pag nag withdraw ka, Edi may pera kana!

Sa Withdrawal money ang involve dito ha! Wala ng iba ^_^

•Sa expenses naman

Kapag gumastos ka/ nag increase ang expense debit yun!

bakit?

Kasi sa pag gastos involve ang pera.
At ang pera ay example ng asset Tama?

So kapag gumastos ka, magbabayad ka.
Edi nabawasan ang cash mo/asset!

Halimbawa:
Paid P3000 for one month electricity.

Dr. Utilities expense 3,000
Cr. Cash 3,000

#TANDAAN (pansamantala)
Debit is what you received, and credit is what you gave for it.
🖤DEBIT= RECEIVED
🖤CREDIT= WHAT YOU GAVE

#CREDIT (abbreviation -> Cr)
•increase in liability or equity account
•decrease in asset

Just like debit, Hindi porket naka credit ang isang account title ay nag decrease na!

TANDAAN: It has no absolute definition din ang credit (FOUND AT THE RIGHT SIDE)

EXAMPLE :
_________________
DEBIT   | CREDIT
               |

Normal balance in credit
(L)-> Liability
(I)-> Income
(C)-> Capital

Pag nasa credit itong mga ito, amount will increase; decrease naman pag nasa debit.

Example:
Ilalagay ang LIABILITY, INCOME AT CAPITAL sa CREDIT pag nag increase/ nadagdagan

PERO!!!

kapag nabawasan/ nag decrease ilalagay mo sa DEBIT

A/n: Nagets po?

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                   LET'S TRY ^_^
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#DEBIT AND CREDIT
Expense is debit, liability is credit

"Pero bakit po? Diba po parehong gastos?"

Actually, magkaiba talaga yan.

Liability is a mode of gaining asset. That's why credit siya.

Because debit is what you received, and credit is what you gave for it.

EXAMPLE:
July 01,2020
Acquired office equipment worth P5000 on account.

Nag acquire ka daw ng office equipment worth P5000, pero utang muna.

So syempre
Debit Office Equipment P5000

Kasi po naka received ka office equipment

Ano ang binigay mo ngayon para ma acquire yun? Nagbayad ka na ba? Hindi pa.

So anong mode of acquisition mo?
Liability.

Credit accounts payable P5000

Balance ba?

Syempre YES balance!!
Debit Office Equipment P5000
Credit accounts payable P5000

Check natin sa accounting equation.

Diba ang accounting equation ay
ASSETS equals LIABILITY plus OWNERS EQUITY ( A = L + OE )

A = L + OE
5,000 = 5,000 + 0
5,000 = 5,000 balance!!

-----------------------------------------------------------      Hanggang Diyan lang muna hihi ^_^
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Tandaan ang (AWE) (LIC)
(A)-> assets
(W)-> withdrawals
(E)-> expenses
(L)-> Liability
(I)-> Income
(C)-> Capital

NORMAL BALANCE/ Increase to:
Assets - Debit
Withdrawal - Debit
Expenses - Debit
Liability - Credit
Income - Credit
Capital - Credit

Kapag naman nag decrease baliktadin mo lang yan ^_^

DECREASE TO:
Assets - Credit
Withdrawal - Credit
Expenses - Credit
Liability - Debit
Income - Debit
Capital - Debit