Definition:
- an accounting method for expressing the effects of a transaction on accounts
- The debited accounts are written first (on top) with the amounts recorded in the left column
- Total debits equal total credits
Accounts
| Type | Account | Dr/cr |
|---|
| Assets | | |
| Current Assets | | |
| Cash | Dr |
| Accounts Receivable | Dr |
| Inventory | Dr |
| Prepaid Expenses | Dr |
| Supplies | Dr |
| Non-current Assets | | |
| Property, Plant, and Equipment (PPE) | Dr |
| Accumulated Depreciation (Contra-Asset) | Cr |
| Intangible Assets | Dr |
| Investments | Dr |
| Liabilities | | |
| Current Liabilities | | |
| Accounts Payable | Cr |
| Salaries Payable | Cr |
| Interest Payable | Cr |
| Unearned Revenue | Cr |
| Taxes Payable | Cr |
| Non-current Liabilities | | |
| Notes Payable (Long-term) | Cr |
| Bonds Payable | Cr |
| Equity | | |
| Common Stock | Cr |
| Additional Paid-in Capital | Cr |
| Retained Earnings | Cr |
| Dividends | Dr |
| Revenue | | |
| Sales Revenue | Cr |
| Service Revenue | Cr |
| Interest Revenue | Cr |
| Gain on Sale of Assets | Cr |
| Expenses | | |
| Cost of Goods Sold (COGS) | Dr |
| Salaries Expense | Dr |
| Rent Expense | Dr |
| Utilities Expense | Dr |
| Insurance Expense | Dr |
| Depreciation Expense | Dr |
| Interest Expense | Dr |
| Loss on Sale of Assets | Dr |
| Contra-Asset Accounts | | |
| Accumulated Depreciation | Cr |
| Allowance for Doubtful Accounts | Cr |
| Contra-Revenue Accounts | | |
| Sales Returns and Allowances | Dr |
| Sales Discounts | Dr |