BUSS1030 Lecture Notes - Lecture 1: Accounts Payable, Share Capital, Accrual
8 Oct 2018
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A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry. Accounts receivables/payable/prepayments = if it goes down then it is a debit or credit, if it goes up then it is a debit or credit (if accounts payable (liability) are going down then it is a debit]) Don"t think of a(cid:272)(cid:272)ount titles as only de(cid:271)it or (cid:272)redit, (cid:448)ie(cid:449) it as (cid:449)hether it goes do(cid:449)n or up for either assets, liabilities and owners" equity) Accruals = expenses that are incurred but not paid (record when incurred in transaction even though you haven"t paid for it yet)
