222

$show=home

$show=home

Welcome to Accounting Education

The Free Online University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

Latest Contents$type=three$count=6$author=hide$comment=hide$label=hide$s=hide$show=home$date=hide

$show=home

Why Accounting Education Important


Free
Simple
Have Quality Study Material
Taught by Expert

Connect Vinod Kumar (Educator)

Why Accounting Education Volunteer


Free training
It's educational
It's fun
It helps others

Become Volunteer Teacher

Journal Entries Where both Parts Debit and Credit Involve Specific Assets or Liabilities

 


Some of the students have a myth that both assets and liabilities must involve in the part of debit and credit. Because we are making the journal entries of transaction and transaction may be increasing or decreasing assets and increasing and decreasing of liabilities as per accounting equation. But it is not true. 

First of all, you know, assets are two one is long term or fixed assets and second is current assets and liabilities are two types, one is long term or fixed liabilities and second current liabilities. 

1. In the Journal Entries both Fixed Assets in its Debit and Credit 

If one fixed asset will increase, it will debit and if other fixed asset will decrease it will credit. The Rule will apply, increase in asset will debit and decrease in asset will credit. Accounting equation assets and liabilities will equal with this. 

Transaction Example

Mr. A has grinding machine which needs Mr. B for business. Mr. B has the furniture which needs Mr. A for business. 
Mr. A went to Mr. B and offer to give him his grinding machine for getting his furniture. Mr. B is ready and done for this because both think its value is Rs. 20,000

In the books of Mr. A

Furniture Account Debit 20,000

Grinding Machine Account Credit 20000

In above journal entry, furniture has bee debited which is fixed asset. grinding machine account credit which is fixed asset. Furniture has increased in the business of Mr. A and grinding machine has decreased in the business of Mr. A

2. In the Journal Entries both Current Assets  in its Debit and Credit 

If one Current asset will increase, it will debit and if another Current  asset will decrease it will credit. Rule will apply, increase in asset will debit and decrease in asset will credit. Accounting equation assets and liabilities will equal with this. 

Transaction Example

Mr. A has stock of  Rs. 10000  which needs Mr. B for business as raw material. Mr. B has the stock of Rs. 20000  which needs Mr. A for business as raw material. 


Mr. A went to Mr. B and offer to give his stock for getting his stock and balance pay in cash. Mr. B is ready and done

In the books of Mr. A

Purchase the Stock of  B Account Debit 20,000

Cash Account Credit 10000

Sale Account 10000

In above journal entry, stock of b has debited which is current asset. cash account and sale of stock of a account credit which is also current asset. stock of B has increased in the business of Mr. A and cash and own stock of A  has decreased in the business of Mr. A


3. In the Journal Entries both Fixed Liabilities in its Debit and Credit 

If one fixed liability will increase, it will credit and if other fixed liability will decrease it will debit. Rule will apply, increase in liability will credit and decrease in liability will debit. Accounting equation assets and liabilities will equal with this. 

Transaction Example

Mr. A has taken long-term  loan from B Bank Rs. 5,00,000. Mr. B has taken long term-loan from B  Bank of Rs. 10,0000. Both did not gave the money to B bank on maturity. B bank taken cash from C bank and transfer his asset to B bank. Now, both Mr A and Mr has to pay to C bank

In the books of Mr. A

A bank's Loan Account Debit

C bank's loan account Credit 


In above journal entry, A bank's loan account has been debited which is decrease in fixed asset. C bank's loan account has been credited  because it is increased of fixed loan of c bank. 


4. In the Journal Entries both Current liabilities  in its Debit and Credit 

If one side of current liability will increase and other side current liability decrease, this situation will happen. 

Suppose, I have to taken A bank overdraft and I paid through B bank overdraft. Now, I just changed one current liability into other current liability because solving my maturity issue of Rs. 10000

A's bank overdraft 10000

B's bank overdraft 10000

even this entry can write different way but final effect is above one current liability has increased and other current liability has decreased. 

COMMENTS

$hide=page


Name

access,2,account,87,accountant,92,Accounting,679,accounting definitions,99,accounting ebook,3,Accounting education,85,accounting procedure,2,accounting process outsourcing,2,Accounting Software,54,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,announcements,61,Annuity,2,assets,52,audit,46,auditing,41,Australia,2,B.Com.,22,balance sheet,83,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,2,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,29,calculator,4,canada,3,capital,72,capital budgeting,27,career,20,cash,40,cash book,8,cash flow statement,8,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,159,cost accounting,194,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,16,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,822,Finance Journal Entries,4,Financial,134,financial accounting,144,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,10,income,17,income statement,16,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,175,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,41,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,136,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,15,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,4,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,13,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,214,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,69,study,21,subsidiary company,2,svtuition,13,swiss bank,2,tally,99,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,13,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,8,VAT,22,Video,35,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Journal Entries Where both Parts Debit and Credit Involve Specific Assets or Liabilities
Journal Entries Where both Parts Debit and Credit Involve Specific Assets or Liabilities
https://1.bp.blogspot.com/-MwsK2OGTX0c/YOguomcsMeI/AAAAAAAAYMM/2Wc6riucWG4WQftLdkbiTHqGj8XZU0CMACLcBGAsYHQ/w524-h295/journal%2Bentries.png
https://1.bp.blogspot.com/-MwsK2OGTX0c/YOguomcsMeI/AAAAAAAAYMM/2Wc6riucWG4WQftLdkbiTHqGj8XZU0CMACLcBGAsYHQ/s72-w524-c-h295/journal%2Bentries.png
Accounting Education
https://www.svtuition.org/2021/07/journal-entries-where-both-parts-debit.html
https://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2021/07/journal-entries-where-both-parts-debit.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy