Can someone please explain this accounting

samapp

It says in my book for credit transactions with expenses and gains to

Expenses
Debit to record an increase in the value of an expense. (If the debit side is money coming in then why would I debit an increase in the expense)

Credit to record a reduction in the value of an expense. (If the credit side is money going out then why would I credit a reduction. Isn't a reduction on expenses a good thing and should I not debit it?)

Gains
Debit to record a reduction in the value of a gain. ( If i was receiving rent then why would I debit a reduction in the rent I receive)

Credit to record an increase in the value of a gain. ( Why would I credit an increase in what I am gaining?)

Please could someone explain my questions that are in the brackets.................. I'm totally lost!

yay_for_summer

I'll give it a go...

1. Debit Expenses a/c to increase expenses because of the double entry system. You generally pay expenses to creditors. If your expense goes up, credit side of creditors goes up. So you credit creditor's a/c and debit expenses a/c.

2. Reduction in expenses - reduces the amount you owe a creditor, so you debit creditor's a/c and credit expenses a/c to complete double entry.

3. Reduction in gain - reduces the amount a debtor owes you. So that'll go on the credit side of the debtor's a/c and debit side of gains a/c (eg rent) for double entry.

4. Same principle of double entry. You're owed more rent, so debtor's a/c goes up so it's debited, so your rent a/c is credited.

Hope this helps a bit!