Liability T-account transactions: Decrease liabilities with a debit and increase with a creditBasic entries:
- Increase liability from a loan: Debit cash, credit liability
- Increase liability for expense: Debit expense, credit liability
- Decrease liability from a loan repayment: Debit liability, credit cash
Learn Accounting Faster and Easier
Learn financial accounting, debits & credits, and business tax easier with flashcards, mobile apps, and games. Learn accounting anytime and anywhere. AccountingPlay will help you learn in a fast and fun way. Available on iOS and Android
One Time Payment. Lifetime Access.
Learn more comprehensively about debits and credits, financial accounting, Excel fundamentals, business tax prep & plan, CPA tax prep, and how to start and grow your business right. Get access to all of our books, spreadsheets, academic papers, cheat sheet, audio vault, videos, and more.
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.