Answer Posted / 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.)
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