The basics of accounting contains 5 account type. and based on that Cr and Dr will be effected.
The 5 baisc account types are
The rules are
A E |
Dr (Incr) Cr (Decr) |
L I C |
Cr (Incr) Dr (Decr) |
Receipt :
Here we are receiving amount which means Asset Increases
Main Account -- Dr
Details(Particulars) -- Cr
Example
Cash Receipt for Loan Intrest , Share.
So for this
Cash - Dr,
Loan Intrest , Share -- Cr
Payment
Main Account -- Cr
Details(Particulars) -- Dr
Example
Cash Payment for Loan, Share.
So for this
Cash - Cr,
Loan , Share -- Dr