-When increasing an asset account we make a debit entry.
-When decreasing an asset account we make a credit entry.
-When increasing a capital/liability account we make a credit entry.
-When decreasing a capital/liability account we make a debit entry.
Illustration of basic accounting entries
2009
June 1 Owner started business ‘ToyWare’ with $5,000 cash in hand.
June 5 The business borrowed $10,000 cash from C.Wuggot.
