Following the Golden Rules of Bookkeeping - dummies

By Jane E. Kelly

Part of Bookkeeping & Accounting All-in-One For Dummies Cheat Sheet (UK Edition)

Some people find double-entry bookkeeping a bit tricky to start with, but stick to these simple golden rules and you’ll never be stuck when you need to create a journal.

  • To increase an asset, debit the asset account.

  • To decrease an asset, credit the asset account.

  • To increase a liability, credit the liability account.

  • To decrease a liability, debit the liability account.

  • To record an expense, debit the expense account.

  • To reduce an expense, credit the expense account.

  • To record income, credit the income account.

  • To reduce income, debit the income account.

Debit on the left, credit on the right.