In accounting, expense accounts are debits or credits??

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Crampton 0 Comments

I have just learning the double entry accounting system and I am confused with the expenses. What are the journals that are posted for expenses? Is it a credit or a debit?

1 Answer

score 0 · Answer 1 · 2012-12-02T16:29:10+00:00

Expense accounts are part of the income statement and the entries are debits. For example, if you pay $100 for rent, you will have the following two entries:

Dr Rent Expense Account 100
Credit Cash 100