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What is the double entry system?
This is a system that enters each transaction twice, once on the debit side and once on the credit side.
what is meant by debit entry ?
A debit entry is one that is recorded on the left side of an account.
What is a credit entry?
A credit entry is one that is recorded on the right side of an account.
What is the general principle of Double Entry?
The principle of double entry is for every debit entry there is a corresponding credit entry for each transaction.
To record an increase in an asset what entry should we make?
Debit entry
To record a decrease in an asset, what entry do we make?
Credit entry
To record a decrease in a liability, what entry do we make?
Debit entry
To record an increase in liability what entry do we make?
Credit Entry
To record an increase in capital, what entry do we make?
Credit entry
To record a decrease in capital, what entry do we make?
Debit entry
