Interested to Buy Any Domain ? << Click Here >> for more details...
All Expences Debit?
- 2 Answers
- 4753 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / yogendra.c
In accounting and bookkeeping, expenses are debited in order to cause a decrease in the owner's (or stockholders') equity.
The accounting equation (assets = liabilities + owner's equity) may help you understand why expenses are debited...
Assets are on the left side of the accounting equation and the balances in the asset accounts are normally on the left side of the accounts. A balance on the left side of an account is referred to as a debit balance.
Liabilities and owner's equity are on the right side of the accounting equation and the balances in the liability and owner's equity accounts are normally on the right side of the accounts. Balances on the right side of an account are credit balances.
Since expenses cause a decrease to the owner's equity credit balance, a debit entry is required. However, at the time that the expense is recorded, the amount is entered as a debit in an expense account. (At the end of the year the debit balances in the expense accounts will be closed/transferred to an owner's equity capital account.)
| Is This Answer Correct ? | 0 Yes | 0 No |
What is the procedure of submit bank guarantees and cancellation.
whats difference between manufacturing account & cost account
what is the difference between method of costing and technique of costing
What is the purpose of preparing BRS? What are the uses?
Why did you choose the a-levels you did?
what is ex-gratia to employees
1 Answers Chartered Accountant,
Can i put opening stock in new company during closing time
wages and labour entry
6. Your grandfather is 75 years old. He has total savings of Rs.80,000. He expects that he live for another 10 years and will like to spend his savings by then. He places his savings into a bank account earning 10 per cent annually. He will draw equal amount each year- the first withdrawal occurring one year from now in such a way that his account balance becomes zero at the end of 10 years. How much will be his annual withdrawal?
What is marginal costing?
What is your role in planning?
what should by the journal entries for tds payble
Audit 
