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Is salary an expense or expenditue?
Salaries is recorded as a debit entry in the wages account, so it is classed as an expense. Wages are recorded in the nominal ledger or ( general Ledger ) it is classed as a debit entry because the bank/cash book is credited think of debit as in and credit as out. If need any further information please ask. Andrew Swift
When purchases are made on credit what three accounts are affected on a balance sheet?
Assets are affected such as supplies are increased on debit side. Accounts payable is affected by being credited or increased. Owners equity is also affected by being credited or lowered on the balance sheet.
What do you debit and credit on a credit sale?
Assume we are selling a dress on credit for $100; the dress has a cost of $80. Accounts receivable: debit 100 Sales: credit 100 Cost of goods sold: debit 80 Inventory: credit 80 The rationale is as follows: Inventory is an asset (normal debit balance), which is reduced (hence a credit) Accounts receivable is an asset (normal debit balance), which increases (hence a credit) A profit is made of 20, hence equity increases. Instead of applying a credit on retained earnings, temporary T-accounts are used (sales and cost of goods sold) Sales has a normal credit balance, hence it is credited Cost of goods sold has a normal debit balance, hence it is debited Notice that the two temporary T-accounts together are credited for 20, which is the profit margin
Is insurance credit or debit?
Debit
Is an investment credit or debit?
Debit
What account is credited for net pay?
debit
What account is credited when a debit card is used to pay cash on account?
It is your checking account , but it is debited, not credited.
Is commission receivable a credit or debit?
commission receivable is credited
Is bank overdraft credited or debited?
It is a debit and taken out of your account.
Is prepaid expense a debit or credit?
It is an asset, therefore a debit (on initial recognition). It is credited as the prepaid expenses are actually received (expensed out)
Whether increase in liability credit or debit?
All liabilities are credited and assets are debited so increase in liability will be credited and not debited.
What is the journal entry for credit?
Debit accounts receivableCredit person's account (to be credited)
Is an owners drawing account is a debit?
Yes owners drawings account is debit because cash is credited when withdrawal to reduce the cash from business.
What is entry for interest credited into Bank account?
bank account debit and interest payable credit
Cash sales of 2600 was credited into the bank?
[Debit] cash 2600 Credit sales 2600 Deposited to bank Debit Bank 2600 Credit Cash 2600
What is debited and credited in adjusting entry for prepaid insurance?
[Debit] Prepaid Insurance [Credit] Cash / bank
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
