Debits and Credits for Income Statement Accounts

Principles of Debit and Credit

1. Cash Sales


Cash Balance Side = Debit Sales Balance Side = Debit
Cash Balance Side = Credit Sales Balance Side = Credit
Cash increases Sales Increases
Cash decreases Sales Decreases
Debit Cash Debit Sales
Credit Cash Credit Sales

2. Charge Sale - on account


Sales Balance Side = Debit Accounts Receivable Balance Side = Debit
Sales Balance Side = Credit Accounts Receivable Balance Side = Credit
Sales increases Accounts Receibable Increases
Sales decreases Accounts Receivable Decreases
Debit Sales Debit Accounts Receivable
Credit Sales Credit Accounts Receivable

3. Made cash payment for rent


Cash Balance Side = Debit Rent Expense Balance Side = Debit
Cash Balance Side = Credit Rent Expense Balance Side = Credit
Cash increases Rent Expense Increases
Cash decreases Rent Expense Decreases
Debit Cash Debit Rent Expense
Credit Cash Credit Rent Expense

4. Paid cash to purchase merchandise for resale


Cash Balance Side = Debit Purchases Balance Side = Debit
Cash Balance Side = Credit Purchases Balance Side = Credit
Cash increases Purchases Increases
Cash decreases Purchases Decreases
Debit Cash Debit Purchases
Credit Cash Credit Purchases

5. Purchased merchandise on account


Purchases Balance Side = Debit Accounts Payable Balance Side = Debit
Purchases Balance Side = Credit Accounts Payable Balance Side = Credit
Purchases increases Accounts Payable Increases
Purchases decreases Accounts Payable Decreases
Debit Purchases Debit Accounts Payable
Credit Purchases Credit Accounts Payable

6. Cash payment on account to a vendor


Cash Balance Side = Debit Accounts Payable Balance Side = Debit
Cash Balance Side = Credit Accounts Payable Balance Side = Credit
Cash increases Accounts Payable Increases
Cash decreases Acounts Payable Decreases
Debit Cash Debit Accounts Payable
Credit Cash Credit Accounts Payable