1. Rules of Debit and Credit
•Meaning
•Samples
•Accounting
Equation

2. debit
-Means “Left side of
an account.”
-The word Debit is
abbreviated as Dr.

3. Credit
-Means “Right side of
an account.”
-Credit is abbreviated
as Cr.

5. (1) Purchased computer unit for P30,000, on account.
Asset (Office Equipment)
30, 000
Liability (Accounts Payable)
30,000
Increase in Asset is Debited; Increase in Liability is Credited.

6. (2) Purchased computer unit for cash, P30,000
Asset (Cash)
30, 000 30, 000
Asset (Office Equipment)
30,000
30,000
Increase in Asset is Debited; Decrease in onother form of Asset is
Credited.

7. (3)Rendered Service on Account. P20,000
Asset (Accounts Receivable)
20, 000
Revenue (Service Revenue)
20, 000
Increase in Asset is Debited; Increase in Revenue is Credited.

8. (4) Paid the account to supplier in full, P 30,000
Asset (Cash)
30,000
Liability (Accounts Payable)
30,000
Decrease in Asset is Credited; Decrease in Liability is Debited.

9. (5) Paid Salaries of employees. P20,000
Asset (Cash)
20,000
Expense (Salaries Expense)
20,000
Decrease in Asset is Credited; Increase in Expense is Debited.

10. Accounting Equation
Asset = Liabilities + Capital