Matt, Allison, and Sarah, three accounting students, were discussing the rules of debits and credits. Matt says
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Matt, Allison, and Sarah, three accounting students, were discussing the rules of debits and credits. Matt says that debits increase account balances and credits decrease account balances. Allison says that Matt is wrong, that credits increase account balances and debits decrease account balances. Sarah interrupts and declares that they are both correct.
Required
Explain what Sarah meant and give examples of transactions where debits increase account balances, credits decrease account balances, credits increase account balances, and debits decrease account balances.
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Sai Krishna Reddy Kusam
I have studied in one of the top ranked colleges of my country. I have always been among the top 10% of my class. I have always been punctual, curious and hard working. Currently I am in the Industry, which has taught me how the academics differ from the real world.
For 2 years I have tutored students on other platforms. I have always been clear in expressing my ideas and helping the student understand the core concept. I also try to give the student practical example of a problem which not only helps the student understand the concept easily, but also helps the student in understanding the real world application which makes him/her industry ready.
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