Financial Accounting
Lesson 04

Practice Problems

Reference

Debit Credit Helper

Assets (A)

Increases: Debit

Decreases: Credit

Examples: Cash, Accounts Receivable, Equipment, Inventory

Dividends (D)

Increases: Debit

Decreases: Credit

Withdrawals by owners from the business.

Expenses (E)

Increases: Debit

Decreases: Credit

Examples: Rent Expense, Salaries Expense, Utilities Expense

Liabilities (L)

Increases: Credit

Decreases: Debit

Examples: Accounts Payable, Bank Loans, Unearned Revenue

Income / Revenue (I)

Increases: Credit

Decreases: Debit

Examples: Sales Revenue, Service Revenue, Interest Income

Capital / Equity (C)

Increases: Credit

Decreases: Debit

Examples: Owner's Capital, Share Capital, Retained Earnings

Interactive

T-Account & Trial Balance Simulator

Explore how each transaction creates changes in T-accounts and cumulatively impacts the trial balance. Select a transaction to see its effect.

Simulate a Transaction:

T-Accounts for Latest Transaction:

Current Trial Balance:

Initial Trial Balance (All accounts at ₹0)