Rules of debit and credit Obj. 1, 2 The following table summarizes the rules of debit and credit. For each of the items a through l, indicate whether the proper answer is a debit or a credit.

Increase Decrease Normal Balance Balance sheet accounts:

Asset

(a) Credit (b)

Liability Credit

(c) (d)

Stockholders’ equity:

Common Stock Credit

(e) (f )

Retained Earnings (g) (h) Credit Dividends Debit Credit (i)

Income statement accounts:

Revenue (j) (k) Credit Expense (l) Credit Debit AppendixLO1