DEBITS AND CREDITS

Types/categories of Accounts
 Assets  Capital/Owner’s Equity
 Liabilities
 Expenses/losses
 Revenues/Gains/Income
accounts
 Some e.g. of Asset Some e.g. of
accounts Expense accounts
• Bank account • Rent
• Cash account • Salaries & wages
• Furniture account

• Inventory/stock
• Utilities (electricity, telephone,
• Debtor/Accounts receivable internet, water)
 An e.g. of Capital Some e.g. of
account Revenue accounts
• Capital / Owner’s Equity
• Sales

• Interest income
• Dividends
• Rent income
 Some e.g. of Liability accounts
• Creditors/Accounts payable

• Utilities owing/payable/accrued
• Interest owing
• Rent owing/payable/accrued
• Loan owing/payable/accrued