Question

how is an expense +($) when a credit has been paid and -($) from assets?

Answer 1

Hi,

There are golden rules of accounting;

For real accounts i.e. assets and liabilities - Debit what comes in, Credit what goes out. So if an asset is received it has to be debited and vice versa.

For nominal accounts i.e. expense and income - Debit all expenses and losses, Credit all incomes and gains. So if amount is spent for any expense then that expense account will be debited.

Sometimes debits are represented by way of positive amounts and credits by negative amounts.

So, if an expense is incurred by paying cash as in the question it will be recorded by debiting relevant expense account and crediting cash account. This can also be represented by putting positive amount under expense and negative amount in cash.