Rules of Debits and Credits Financial Accounting
If a company receives $1,000 in cash, it debits the Cash account and credits the Service Revenue account. The total value debited must always equal the total value credited. Most programs offer invoicing, payment tracking, and management of property assets and depreciation. This opposition keeps double-entry bookkeeping balanced. These include wages, office supplies, advertising, and rent. If you’re struggling to figure out how to post a particular transaction, review your company’s general ledger. Thus, a cash receipt translates into a debit to your cash account. She secures a bank loan to pay for the space, equipment, and staff wages. So…