Understand the concept of Debit and Credit in Day Book Report

As per modern rules of accounting, transaction are categorised into 6 heads or accounts and any increase or decrease in such account will either be debited or credited in the manner shown in the table given below:

Types of Account	Account to be        debited	Account to be      credited
Assets account (Cash in Hand, Bank A/cs, Sundry Debtors, Current Assets, Fixed Assets, Inventory)	Increase	Decrease
Liabilities account (Sundry Creditors, Current Liabilities, Duties and Taxes)	Decrease	Increase
Capital account (Capital A/cs)	Decrease	Increase
Revenue account (Sales A/C)	Decrease	Increase
Expenditure account	Increase	Decrease
Withdrawal account	Increase	Decrease

Now let us consider various Transactions in Book Keeper:

Voucher Type: Sales   

When we are making Sales we wish to Increase the balance of Customer Account (Sundry Debtor).

Now as per rule to Increase balance of Sundry Debtor amount should go to Debit Side.

Voucher Type: Credit Note/Receipt from Customer

When customer is returning us some item or is making payment to us we need to Decrease the balance of Customer Account (Sundry Debtor).

Now as per rule to Decrease balance of Sundry Debtor amount should go to Credit Side.

Voucher Type: Purchase 

When we are Purchasing from Supplier we wish to Increase the balance of Supplier Account (Sundry Creditor).

Now as per rule to Increase balance of Sundry Creditor amount should go to Credit Side.

Voucher Type: Debit Note/Payment to Supplier

When we are returning  some of the purchased item to our Supplier or if we are making payment to our Supplier we need to Decrease the balance of Supplier Account (Sundry Creditor).

Now as per rule to Decrease balance of Sundry Creditor amount should go to Debit Side.

Voucher Type: Manufacturing Journal

Manufacturing is an Internal task. We are consuming certain items (Raw Materials) and for equal value we are also creating something (Manufactured Item). Therefore equal amount must go on both Debit and Credit Side.

Voucher Type: Inventory Adjustment/Stock Adjustment

Case : Add Stock

When we are adding stock, it is like a gain/income for us and as per rule all Incomes are to be credited. Therefore the amount will go to Credit Side.

Case : Reduce Stock

When we are reducing stock, we are recording our losses/wastage and this needs to be treated as Expenditure. As per rule all Expenses are to be debited. Therefore the amount will go to Dedit Side.

Voucher Type : Contra/Banking Transactions

For all contra enteries, the software will always show you amount in Credit Side.

In every Contra Entry both accounts are affected by equal amounts. Details of account that is Debited or Credited can be seen on the left.

Voucher Type : Journal

For all Journal voucher, the software will always show you amount in Debit Side.

In every Journal Entry both accounts are affected by equal amounts. Details of account that is Debited or Credited can be seen on the left.