Accounting Method Based On Debit And Credit

Debit and credit bookkeeping is one of the double entry bookkeeping methods. It is based on the theory of "assets = Liabilities + owners' equity", with "borrowing" and "lending" as the bookkeeping symbols, and "double borrowing and borrowing, borrowing and lending equal" as a bookkeeping rule. The "borrowing" and "lending" two characters are used as bookkeeping symbols instead of "pure" or "abstract" accounting symbols, but rather scientific accounting symbols with profound economic implications.

　 One Debit and credit bookkeeping Meaning

Debit and credit bookkeeping is based on "borrowing" and "borrowing". accounting symbol A double entry bookkeeping method. "Borrow" and "loan" represent the two opposite positions of accounts: the left side of the account is called "debtor", and the right side of the account is called "lender".

When the account is registered, the amount of the increase in the debtor registration of the asset class and the cost account account, and the reduction in the amount of credit registration. The amount of credit increase registered in liabilities and owners' equity and income accounts, and the amount of debit registration reduced.

　　 Two Bookkeeping principle

The method of debit and credit bookkeeping refers to the accounting identity of "assets = Liabilities + owners' equity".

The economic activities of various units are varied and varied, but the total amount of assets is equal to liabilities and owners' equity, no matter what happens. On the whole, the changes in its funds are mainly manifested in the following four ways:

(L) both assets and liabilities and owners' equity should be increased at the same time.

(2) assets and liabilities and owners' rights and interests should be reduced at the same time.

(3) the balance of assets is increased or reduced, and the balance of increase and decrease is equal.

(4) the liabilities and owners' equity will be increased or reduced, and the amount of increase or decrease will be equal.

　　 3. accounting rules for debit and credit bookkeeping

The bookkeeping rule of debit and credit bookkeeping is: if there is borrowing, there will be loans. When we use the debit and credit bookkeeping method to register economic business, we usually operate according to the following steps:

(1) analyze the contents of economic business, determine what the accounting elements it involves, changes in assets or cost elements, or changes in liabilities or owners' equity elements.

(2) which elements should be further increased, which elements will be reduced, or all will increase or decrease.

(3) determine which accounts should be entered.

(4) determine the direction and amount of the economic transaction should be credited to the relevant account. Any increase in assets and costs and costs, reduction in liabilities and owners' equity, and reduction in income should be credited to all relevant accounts. Any asset or expense, cost reduction, debt and owner equity and income increase should be credited to the relevant accounts.