How can one know if a transaction is debited or credited?

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1172540

2026-08-18 20:10

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You need to look at the circumstances and determine what type of accounts are increasing and what's decreasing.

An increase in the following accounts are:

Assets - debits

Liabilities - credits

Capital - credits

Revenue - capital

Expenditure - debit.

Everything will fall under one of those five types of accounts.

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