Accounting Basics(five Pillars)

since we all know that all over the world,double entry accounting system is used now a days. There are five basic pillars of accounting which we must understand before starting financial accounting course.

1. Assets
2. Liabilities
3. Revenues
4. Expenses
5. Equity or Capital

now some rules of double entry accounting system

• When assets increase---debit
• When assets decrease---credit
• When expense increase---debit
• When expense decrease---credit
• When liability increase---credit
• When liability decrease---debit
• When Revenue increase---credit
• When Revenue decrease---debit
• When equity increase---credit
• When equity decrease---debit

These all rules help to create general journal from transactions given.