Hey if drawings decrease assets shouldn’t they be on the opposite side of the assets? Hence credit? I agree that they are a debit item, but for the purpose of understanding please enlighten me Referring to 02:18
Assets normally have a debit balance. To decrease the value of an asset we credit the asset. Suppose we took cash drawings. The account to be credited is cash and the drawings account is debited. Debit the receiver credit the giver.
@@easyaccountingwithDelight i understood the reason why drawings are debited, simply because drawings account gains. Now, enlighten me on outstanding expenses
thanks. it looks much clearer when classify into 4 part: asset, liabilities, owners' equity, revenue & expenses
It's very good to study with you.
Well explained
Hey if drawings decrease assets shouldn’t they be on the opposite side of the assets? Hence credit?
I agree that they are a debit item, but for the purpose of understanding please enlighten me
Referring to 02:18
Assets normally have a debit balance. To decrease the value of an asset we credit the asset. Suppose we took cash drawings. The account to be credited is cash and the drawings account is debited. Debit the receiver credit the giver.
@@easyaccountingwithDelight i understood the reason why drawings are debited, simply because drawings account gains. Now, enlighten me on outstanding expenses
Outstanding expenses are expenses we haven’t paid yet. They are liabilities.
Thanks
finally thanks i passed my exams because of this video
Glad this helped!!
Please share this video :)
Finally!!!😄😄
why is it that motor vehicle, fixtures and fittings has debit balance
Because they are assets and assets have a debit balance.
Teach me accounting
Without doing a t account how can you show a trail balance
Please re-watch the video. It explains how you can do it.
Still don't get it😢😢😢😢😢
Right?