All Expences Debit?

Answers were Sorted based on User's Feedback



All Expences Debit?..

Answer / raj kumar mosha

Yes,All Expences Debit

Is This Answer Correct ?    9 Yes 1 No

All Expences Debit?..

Answer / yogendra.c

In accounting and bookkeeping, expenses are debited in order to cause a decrease in the owner's (or stockholders') equity.

The accounting equation (assets = liabilities + owner's equity) may help you understand why expenses are debited...

Assets are on the left side of the accounting equation and the balances in the asset accounts are normally on the left side of the accounts. A balance on the left side of an account is referred to as a debit balance.

Liabilities and owner's equity are on the right side of the accounting equation and the balances in the liability and owner's equity accounts are normally on the right side of the accounts. Balances on the right side of an account are credit balances.

Since expenses cause a decrease to the owner's equity credit balance, a debit entry is required. However, at the time that the expense is recorded, the amount is entered as a debit in an expense account. (At the end of the year the debit balances in the expense accounts will be closed/transferred to an owner's equity capital account.)

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting General Interview Questions

question paper pattern of factset

1 Answers   Capital IQ,


what is accural

5 Answers   Genpact,


What are mis reports?

0 Answers  


example wrongly financial statments showing vat refund (under Advances) for the finanical year 08-09 , but present assement year after assement by cto given vat refund more than ledger showing balance then decided to every month set off vat payable to vat refund(advance) but more than recoverd compare with company and cto then what is the entry to be take.

0 Answers  


What is the TDS deduction & Service chargges for FY 2011- 2012

2 Answers  






what are the processes of account reconcillation

0 Answers  


What is the golden rule of General Ledger?

2 Answers   IBM,


How can i write off bad debt in tally erp9 ?

1 Answers  


expenses incurred in the formation of the company are show in : 1)debit side in the profit and loss a/c 2)as an assets in balance sheet 3) as an liabiliies in balance sheet 4) credit side in profit and loss a/c

2 Answers  


An importer import some goods @10,000 us dollar on cif basis following dollar rates avilable on the date of presentention of bill entry.(1) Rbi floor rate 46.35,(2) rate notify by CBE AND C under section 14(3)(a)(i)of custom act Rs.46.55 (3) Rate at which bank has reliased the payment from importer Rs.46.58, what will be assessable valu according to custom act?

1 Answers   RBI,


"Cheque deposited in to bank" How can i make a entry in tally when like this entry came

1 Answers  


When you prepare Profit and loss A/C either you will get profit or loss but not both.Then why we are saying it as profit AND loss A/C,why cannot we say it is as Profit OR loss account?

0 Answers  


Categories