GUIDE深度 · Deep dive
Common Accounting Entries
Read the cash flow first: buying increases an asset/expense; borrowing increases both asset and liability; revenue increases asset and revenue; depreciation increases expense and accumulated depreciation.
Purchases/sales
Cash purchase: debit expense/asset, credit cash.
Sale: debit bank/receivable, credit revenue.
Loans/depreciation
Loan: debit bank, credit short-term loan.
Depreciation: debit expense, credit accumulated depreciation.
For each transaction, name the two accounts and their direction before writing amounts; this catches most debit/credit reversals.
FAQ
Credit vs cash purchase?
Credit purchase credits accounts payable; cash purchase credits bank/cash.
Why credit accumulated depreciation?
The asset's original cost stays; accumulated depreciation is a contra account.