EX 2-4 Rules of debit and credit

The following table summarizes the rules of debit and credit. For each of the items (a) through (l), indicate whether the proper answer is a debit or a credit.

increase Decrease Normal balance Balance sheet accounts: Asset(a) (b) Debit Liability (c) Debit (d) Stockholders’ equity: Common Stock Credit (e) (f ) Retained Earnings (g) (h) Credit Dividends Debit Credit (i) Income statement accounts: Revenue (j) (k) Credit Expense (l) Credit Debit

Answer:

a. debit

b. credit

c. credit

d. credit

e. debit

f. credit

g. credit 

h. debit 

i. debit 

j. credit 

k. debit 

l. debit