Why do Expenses have a balance of debit and why do Revenues and Capital have a balance of credit?
I am studying accounting and can't understand that. I understand that assets have a balance of debit, but why expenses? I understand that Liabilites have a normal balance of credit, but why Revenue and Capital?
Public Comments
- Assets = liabilties + equity. if you have $1000 cash and you owe $300 to a friend your equity is $700 Assets = liabilities + equity $1000 = $300 + $700 make sense?
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