Assets ?liabilities = Capital

Debit: meaning to receive , or value received,

Credit: meaning to give , or value given

Example of account entries

1.      The proprietor contributes some cash to business.

Dr : Cash account  Cr : Capital account

2.      Some cash in the till is paid into the business bank account.

        Dr : Bank account  Cr : Cash account

3.      A van is purchased for use in the business and paid by cheque

        Dr : Van account   Cr : Bank account

4.      Some goods are purchased for cash

        Dr : purchase      Cr : Cash account

5.      Some goods are purchase on credit from Fred .

        Dr : Purchases     Cr : Fred account

6.      Some goods are sold for cash

        Dr : cash          Cr: sales account

7.      Some goods are sold on credit to Sarah