Debit Credit Rules
Debit Credit Rules are applied to every transaction recorded in the books of accounts. If one account is debited, another account/s , will be credited with the same amount .
For example, if someone purchases goods, such purchase would increase the goods or an asset. Therefore, we will debit the Purchase account (Increase in Asset is debited) . When we purchase goods, we pay cash for it. Therefore, the cash account will be credited with the same amount that has been debited , as purchase would reduce the cash (Decrease in Asset, i.e, cash is credited).