Debit and credit: the rules of double entry sheetStructured-answer frameExplain the double-entry system and give the debit and credit for the given transactions.
How to lay out the answer. Follow the frame, then write it in your own words.
- 1 · Define double entry. Every transaction affects two accounts with an equal debit and credit.
- 2 · Link it to the equation. Equal entries keep A = L + E in balance.
- 3 · Show the rules table. Assets, expenses, drawings: debit to increase. Liabilities, income, capital: credit to increase.
- 4 · Analyse each transaction. Name both accounts, their type, and whether each is debited or credited.
- 5 · Total the debits and credits. Show that they agree.
Scoring tip: Write the account type in brackets beside each account; it shows the examiner your reasoning.
