The answer is c. Dividends Payable decreases in the debit and rent expense decrease in the credit.
What is the rule of debit and credit in account?
Debits and credits are the opposing sides of an accounting journal entry. Rule 1: All accounts that normally contain a debit balance will increase in amount when a debit (left column) is added to them, and reduced when a credit (right column) is added to them.
Can you debit and credit the same account in a journal entry?
credit. Debits and credits are equal but opposite entries in your books. If a debit increases an account, you will decrease the opposite account with a credit.
What are the rules of debit and Credit Accounting?
Revenue/Income accounts: Rule: An increase is recorded on the credit side and a decrease is recorded on the debit side of all revenue accounts. (5). Capital/Equity accounts: Rule: An increase is recorded on the credit side and a decrease is recorded on the debit side of all equity accounts.
Which is an example of a debit or credit balance?
The normal balance of a contra account can be a debit balance or a credit balance An example: Accounts receivable is an asset account that normally has a debit balance. The allowance for doubtful accounts is a contra account to the accounts receivable and normally has a credit (opposite) balance.
Where does the debit go in an accounting entry?
It is positioned on the right in an accounting entry. Whenever an accounting transaction happens, a minimum of two accounts is always impacted, with a debit entry being recorded against one account and a credit entry being recorded against another account.
What happens on the debit side of an account?
If the normal balance of an account is debit, we shall record any increase in that account on the debit side and any decrease on the credit side. If, on the other hand, the normal balance of an account is credit, we shall record any increase in that account on the credit side and any decrease on the debit side.
