Lending cannot be fully understood as income and expenditure.
Debit account of asset category indicates asset increase, and credit account indicates asset decrease.
Debit account and owner's equity account indicate an increase, while debit account indicates a decrease.
In the profit and loss account, crediting the income account means that the income increases, and debiting the income account means that the income decreases.
In the profit and loss account, the expense account is debited to indicate an increase and credited to indicate a decrease.
From the perspective of cash inflow and inflow, the debit indicates receipt and the credit indicates expenditure.
The beginning of the emergence is bank bookkeeping.
Details of production: As we all know, when an enterprise comes into being, all its goods (called goods for the time being) can be called its assets, so where does this asset come from? There are only two places, one is the money borrowed from others, and the other is the money invested by people who own enterprises. From the accounting point of view, borrowing money from others is a liability, while the money invested by the owner himself is the owner's equity, which is the interest of the enterprise owner as the name implies.
Thus a basic formula appears: assets = liabilities+owners' equity.
All the extended formulas in the future are based on this point: with the development of enterprises, the management of enterprises is gradually improved and improved. Then there will be profits, so will the addition of profits destroy the formula? The answer is yes, because while the income increases, the assets of the enterprise are also increasing, but it is not obvious in the formula. So the formula becomes: assets = liabilities+owners' equity+profits.
Expenditure or income, which is borrowing?
1, the borrower or lender may be expenditure or income.
2. For assets, the debit increases and the credit decreases; For liabilities and owners' equity, lenders increase and debits decrease.
What do you mean by borrowing?
Lending is just a symbol in accounting.
It is not the so-called daily borrowing.
First of all, you need to know how many kinds of accountants there are.
Owner's equity, expenses, income and profits of assets and liabilities
Secondly, you should know that all subjects belong to the above categories respectively.
For example, the subject of bank deposit belongs to the asset category, so its increase is included in the debit and the decrease is included in the credit.
For assets and expense accounts (such as cash, bank deposits, materials, fixed assets, receivables, management expenses, main business costs, etc.). ), "loan" means deduction;
2. For liabilities, owners' equity and income subjects (such as accounts payable, long/short-term loans, main business income, paid-in capital, profits for this year, etc.). ), "loan" means add.
Taking cash and bank deposits as the standard, loans are the outflow of funds. For example:
1. When purchasing office supplies, capital outflow: management expenses-office expenses * * Loan: cash * *;
2. When selling products, capital inflow: cash/bank deposit * * loan: main business income * *.
Will the increase in expenses be debited or credited?
The structure of cost account compensation is basically the same as that of asset account, so the debit of cost account registers its increase and the credit registers its decrease.
Are business expenses credited or debited?
Considering the inflow and outflow of funds, the funds are reduced to the credit and the opposite account is the debit.
The outflow of funds is-borrowing business expenses, borrowing cash (bank deposits),
For reference. .
Why is the detailed income of the bank in the lender and the expenditure in the debit?
From the bank's point of view, if the enterprise has more money, the bank has less money, so it is a lender for the bank.
Is the income in the cash book a debit or a credit?
The income in the cash book is the debit, the debit in the cash book indicates the income or increase of cash, and the credit indicates the expenditure or decrease.
The "debit amount" column and "credit amount" column of the cash account book should be filled in according to the borrowing direction and amount of the "cash on hand" subject in the relevant documents.
The column of "Balance" is calculated and filled in according to the formula of "Balance of this Bank = Balance of Uplink+Debit of this Bank-Credit of this Bank".
Generally speaking, cash on hand has no credit balance. Therefore, the debit direction is not printed in front of the balance column of the cash account book, and the balance direction is debit by default. If there is a credit balance in the process of registering the cash account book due to special reasons such as the posting order, the credit balance will be registered in red in the balance column, indicating the credit balance.
Should the balance of financial expenses be debited or credited?
Interest income generated by 1.
Debit: Finance Expense-Interest -75
Loans: Bank deposits -75
2. The entry of financial expenditure is handled correctly.
3. Expense accounts should generally be represented by debits, and even interest income should be represented by negative numbers.
What do expense accounts mean in debit and credit respectively?
Bank deposit interest is the income of interest and the deduction of financial expenses. Of course, it should be recorded as "financial expenses", or you can debit "financial expenses" in red letters.
Should expenditures be credited or debited to accounting vouchers?
Borrow: management fee loan: bank deposit (or cash on hand)