How to determine the debit and credit

To determine where the debit and the credit, look for a business transaction. As a rule, the debit reflects the amount that needs you, and the loan is what you need. For example, you work with any contractors. The amount that you must pay for the goods, will be reflected in the loanthe my balance. In that case, if customers owe you, the debt will be taken into account on the debitE.

If you see a log of business transactions please note that all transactions are registered twice, that is will be the name of the movement, and then two columns. To determine which one is debitand which is creditenough to know that the debit is always recorded on the left side and credit on the right.

To determine the debit and credit, you should know that if the account is active or active-passive, increase debitof the lateral balance leads to an increase of the assets of the organization. While the increase in creditand in these accounts leads to a decrease in the value of the property.

In that case, if the account is passive, the increase in the debitbalance of ovogo leads to a decrease in sources of the organization. Conversely, if increased creditmarketing balance, it means an increase in sources of the organization.

If you want to register the transaction in the General Ledger, you must first formulate the transaction, that is to break the operation in the debit and credit. Carefully consider the essence of the operation. For example, you sold the item to buyer's address. Formed receivables (that is, you are), it is necessary to reflect on the debitthe my account as a credite reflected your debt. So, the debitfrom the account 62 "Settlements with buyers". For the loanu need also to reflect that operation, otherwise the balance will not go. Determine what accounts are gone. From shows that was to sell, so a loane specify the account 90 "Sales".