2. Creditors. "Creditor" refers to the increase of liabilities, income accounts and owners' equity (such as accounts payable, main business income, actual income capital, profits this year and short-term and long-term loans); For assets and expense accounts (such as cash, bank deposits, fixed assets, material management fees, accounts receivable and main business costs, etc.). ), "credit" is a kind of reduction. As far as cash and bank deposits are concerned, loans are the outflow of funds.
Borrowing, which is income and which is expenditure?
The basic structure of the loan account is: the left debit and the right credit, but which party's registration increases and which party's registration decreases depends on the economic content reflected in the account. Can be divided into:
Asset account: the increase is debited, the decrease is credited, and if there is a balance at the end of the period, it is debited.
Equity account: increase the credit and decrease the debit. If there is a balance at the end of the period, credit it.
Cost and expense account: increase is debited, decrease or cancellation is credited. There is no balance after the general expenses are carried forward. If there is a balance, debit it.
Income and profit account: credited when increasing, debited when decreasing or writing off, and there should be no balance at the end of the period after carrying forward income and profit.
Debit and credit are bookkeeping symbols in accounting. No matter what industry, accounting methods, accounting principles and accounting rules are the same.