A debit will decrease turnover, liabilities, and equity.
assets decrease; liabilities decrease
Yes. Liabilities have credit balances, so a debit will reduce a credit balance.
Increase liabilities = credit Decrease labilities = debit
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
A debit will decrease turnover, liabilities, and equity.
assets decrease; liabilities decrease
Yes. Liabilities have credit balances, so a debit will reduce a credit balance.
Increase liabilities = credit Decrease labilities = debit
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
I can think of nothing that will do that in one transaction. Revenue generally does not effect your liabilities. Revenue is an Owners Equity account and most transactions in revenue effect that, not liabilities. (there is one exception and it is explained later on.)Expenses decrease revenue, which in turn decreases retained earnings which effects owners equity.Dividends Paid decrease retained earnings, which in turns also effects owners equity.The only time any "revenue" has an effect on liabilities is if it is an "unearned" revenue. An unearned revenue is a liability, however, it "increases" your liabilities and increases your assets at the same time. Once the unearned revenue is "earned" it then increases your "revenue" and you decrease your liability.
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
Liabilities are decreased by a debit entry...typically a cash payment (Dr. the liability; Cr. Cash)
Assets increase by $4,000.00 Owner's Equity must decrease by $4,000.00
You cannot just decrease an asset and increase a liability without affecting equity since Assets = Liabilities + Equity. And since you want to find a situation where liabilities increase and assets decrease, you will need to decrease equity by the absolute value of both changes (ie -6 + 5 = 11). So, if Assets decrease by 5 and Liabilities increase by 6, then equity needs to decrease by 11 to keep the equation in equilibrium. Essentially this means that the journal entry will require some type of expense that is only partially paid. For example, if you buy a $10 widget and incur and expense immediately but only pay for half of it immediately then your journal entry will be: Dr. Widget expense 10 Cr. Accounts payable 5 Cr. Cash 5 Assets decrease, and Liabilities increase. The trouble you were having was not recognizing the need for the equalizing equity account.
Yes, a debit decrease liability and a credit increase liability. if a debtors/customer make the repayment obligation, it will decrease debtors, meaning decrease in liability.
You cannot just decrease an asset and increase a liability without affecting equity since Assets = Liabilities + Equity. And since you want to find a situation where liabilities increase and assets decrease, you will need to decrease equity by the absolute value of both changes (ie -6 + 5 = 11). So, if Assets decrease by 5 and Liabilities increase by 6, then equity needs to decrease by 11 to keep the equation in equilibrium. Essentially this means that the journal entry will require some type of expense that is only partially paid. For example, if you buy a $10 widget and incur and expense immediately but only pay for half of it immediately then your journal entry will be: Dr. Widget expense 10 Cr. Accounts Payable 5 Cr. Cash 5 Assets decrease, and Liabilities increase. The trouble you were having was not recognizing the need for the equalizing equity account.