Revenue And Expenses Debit Credit Examples, Concepts, Illustrations, Sample Help Online
Looking for Revenue and Expenses Debit Credit Examples, Concepts, Illustrations, Calculations to do your assignment, homework, or project then you are at the correct place.
What is Revenue and Expenses?
Revenue is defined as the income earned or cash or receivables received by a company from its sales of products or services, and interest and dividends earned from marketable securities.
Expenses means the money spent by the company to produce the goods or services that it sells. Such as rent paid, salary paid, electric expenses and many more such expenses are incurred by the company.
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Revenues and Expenses Debit Credit Examples Explanation
The above theory can be well understood with the help of Revenues and Expenses Debit Credit Examples as illustrated below.
Example1
On Jan 10, 2017 company XYZ sold good worth $100,000 in cash. The company would record these sales as revenues and debit the cash account with $100,000 to show increase in cash and credit the sales account by $100,000 to show increase in stockholders’ equity.
Example 2
On Jan 12, 2017 XYZ company paid rent $10,000. The company would record the rent paid as expenses and hence debit the rent account with $10,000 to show the expense incurred due to rent and credit the cash account by $10,000 to show decrease in cash.
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