Developed by Till Muenster, University of Mannheim
Account
Debit (€)
Credit (€)
Debit and credit rules
An account increases on the side shown below and decreases on the opposite side.
Debit (left)
Credit (right)
AssetsExpensesLosses
LiabilitiesShareholders' equityRevenuesGains
Contra accounts
Sales ReturnsDiscount on Bonds PayableTreasury Stock
Contra accounts
Allowance for Doubtful AccountsAllowance for Sales ReturnsDeferred Gross ProfitAccumulated Depreciation
Contra accounts reduce another account, so they behave the opposite way to it.
Accounts Payable: amounts still owed to suppliers or employees. Where a specific liability account exists (e.g. Warranty Liability, Dividends Payable), use that account instead.
Accounts Receivable: amounts owed to the company by customers and others.
Interest Payable / Interest Receivable: interest owed or earned but not yet paid. Accounts Payable / Accounts Receivable are also accepted for interest.
Loans Payable: bank loans. Cash includes bank accounts.