Trial Balance

[LynneA]

Does anyone have an easy way of remembering what items are DR and which are CR when completing a trial balance?

[Andy]

Assets and expenses are debits<BR>Liabilities and income are credits<BR><BR>Alternatively, think about how the transactions got into that account - so long as you can remember the double entry for bank transactions, everything else should fall into place.

[JenW]

I always found it easier to work out which balances are debits and which are credits from the effect they have on the bank account. On the bank account money coming in is on the left (DR) and money going out is on the right (CR). So, if you are paying for something like an expense or an asset it would be money going out of the bank account (CR) so the opposite entry in the expense or asset account would have to be a DR. The opposite would apply for any types of income/liabilities, they would be money coming in (DR) so the opposite entry would have to be a CR. Hope this makes sense.

[Katemarie36]

The best thing I was ever taught is a method to remember this.....<BR><BR>DR_________________CR<BR> P E A : R L S<BR><BR>Which stands for<BR>Purchases, Expense, Assets (DR side)<BR>Revenue, Liabilities, Sales (CR side)<BR><BR>I was told that 6 years ago and I can still remember it