Question

Do I always debit a loss and credit a gain? If not, when would I do it the other way?

Answer 1

Yes, we always debit losses and credit gain. It is not possible to debit gain and credit loss. If we do this then we go against or accounting rule for nominal accounts which states that

        Debit all expenses and Losses

            And Credit all incomes and gains.

For example if we incur expense related to salaries then we always debit salaries expense and credit cash

Secondly, if there is a loss on sale of machinery we will debit it and if there is a gain on sale ten we will credit it.

Therefore, we will always debit losses and credit gains.