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Effects of Debits & Credits in Transactions On the lines provided, indicate with a "+" (for increase) or a " - " (for decrease), the effect the debit or credit has on each account. _______________________________________________________________________
(1)	The business received cash from a customer paying on their account.
	Debit	Credit	Accounts
____	X		Cash
____		X	Accounts Receivable
_______________________________________________________________________
(2)	The owner paid cash for some supplies.
	Debit	Credit	Accounts
____	X		Supplies
____		X	Cash
_______________________________________________________________________
(3)	The owner returned some equipment for credit.
	Debit	Credit	Accounts
____	X		Accounts Payable
____		X	Equipment
_______________________________________________________________________
(4)	The owner invested some personal cash in the business.
	Debit	Credit	Accounts
____	X		Cash
____		X	Capital
_______________________________________________________________________
(5)	The owner withdrew cash from the business for personal use.
	Debit	Credit	Accounts
____	X		Drawing
____		X	Cash
_______________________________________________________________________
(6)	The owner performed services for a customer, payment to be received next month.
	Debit	Credit	Accounts
____	X		Accounts Receivable
____		X	Fees Earned

Answers: (Note: These examples illustrate that in a single transaction you may have both accounts increasing, both accounts decreasing, or one increasing and one decreasing.) _______________________________________________________________________
₍₁₎	The business received cash from a customer paying on their account.
	_Debit	_Credit	_Accounts
₊	_X		_Cash
_-		_X	_{Accounts Receivable}
_______________________________________________________________________
₍₂₎	The owner paid cash for some supplies.
	_Debit	_Credit	_Accounts
₊	_X		_Supplies
_-		_X	_Cash
_______________________________________________________________________
₍₃₎	The owner returned some equipment for credit.
	_Debit	_Credit	_Accounts
_-	_X		_{Accounts Payable}
_-		_X	_Equipment
_______________________________________________________________________
₍₄₎	The owner invested some personal cash in the business.
	_Debit	_Credit	_Accounts
₊	_X		_Cash
₊		_X	_Capital
_______________________________________________________________________
₍₅₎	The owner withdrew cash from the business for personal use.
	_Debit	_Credit	_Accounts
₊	_X		_Drawing
_-		_X	_Cash
_______________________________________________________________________
₍₆₎	The owner performed services for a customer, payment to be received next month.
	_Debit	_Credit	_Accounts
₊	_X		_{Accounts Receivable}
₊		_X	_{Fees Earned}