Double-Entry Bookkeeping

Master the fundamental rule of accounting

Transactions Module
Lesson 1 of 5

Learning Objective

Understand that every transaction affects at least two accounts, and total debits always equal total credits.

Debit Rules

  • • Assets: Increases
  • • Expenses: Increases

Credit Rules

  • • Liabilities: Increases
  • • Equity: Increases

Practice Scenarios

0 of 3 completed

Cash Purchase of Equipment

Sarah purchased office equipment for $5,000 cash

When purchasing equipment with cash, equipment (asset) increases and cash (asset) decreases. Both accounts are affected equally.

Transaction Analysis

Debit: Equipment
$5,000
(Asset)
Credit: Cash
$5,000
(Asset)

Record the Journal Entry

Drag the correct accounts to the debit and credit sides based on the transaction above.

Available Items

Cash
Equipment
Accounts Receivable
Inventory
Accounts Payable
Loan Payable
Owner's Equity
Service Revenue
Rent Expense
Salary Expense
Debit (+)
Max: 1
Drop items here
Drag from above
Credit (-)
Max: 1
Drop items here
Drag from above