Basic rules in journalizing the transactions:
1. Debit all assets
When an asset is increased, asset account will be debited and when an asset is decreased, asset account will be credited.
Example: Cash is an asset. If it is increasing because of a transaction in october, debit cash and if cash is decreasing because of a transaction in october, credit cash.
2. Credit all liabilities
Means when a liability is increased, liability account will be credited and when a liability is decreased, liability account will be debited
3. Debit all expenses and losses and
4. Credit all revenues and Gains
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