Charge and Credit Rules

Taking into consideration the cases in which the different Assets, Liabilities and Capital accounts are loaded and credited, the following rules were instituted:
When Asset increases.

It should be loaded:

• When the Liability decreases.
• When the Capital decreases.
• When Asset decreases.

You must pay:

• When the Liability increases.
• When the Capital increases.
• Capital or income accounts.

As can be seen, only the movement of the Capital account has been explained, and not that of each of the accounts of the Capital or Results, because these are not always opened with a subscription, since everything depends on the operations that are carried out in them. register.
The movement and balance of the main Capital or Income accounts are detailed below:
Selling expenses. Administration expenses. Financial expenses and products. Other expenses and products.
The Selling and Administrative Expenses accounts are intended solely for the recording of operations that produce decreases in the Capital, which is why they should always be charged, since, according to the established rules, the decreases in Capital must be load; consequently, as they are only charged, your balance will always be debtor.

The accounts of Expenses and financial products and Other expenses and products, as they are intended to record operations that produce, Both increases and decreases in Capital, the same can be charged and paid, depending on the type of operation registered in them. They must be charged, when they register Capital decreases, since, according to the established rules, Capital decreases must be charged; otherwise, they must be paid, that is, when capital increases are registered; In accordance with the foregoing, your balance may be a debtor or creditor.
Conclusions:
1. Asset accounts start with a charge, increase by debiting them, decrease by crediting them, and their balance is debtor.
2. Liability accounts start with a credit, increase by crediting them, decrease by debiting them, and their balance is creditor.
3. The Capital account begins with a credit, increases by crediting it, decreases by debiting it, and its balance is usually creditor.
4. Capital or income accounts: Selling expenses and Administration expenses, are always charged and, therefore, their balance will be debtor.
5. Capital or income accounts: Financial expenses and products and Other expenses and products, can be charged or paid and, therefore, their balance may be a debtor or creditor.