Hello.I have just started learning the concepts of accounting.While learning about trial balances, INCOME is put under CREDIT.But by the basic principle, "debit what comes in and credit what goes out" should'nt income be treated as DEBIT?
India Why is income credited in trial balance?
- Thread starter pdpkumar
- Start date
That "basic principle" is going to lead you wrong.
When you sell something for cash you DR cash and CREDIT sales revenue (i.e. "income" for your purposes). So the "income" is a CREDIT and - note that it "did not go out"
When you sell something for cash you DR cash and CREDIT sales revenue (i.e. "income" for your purposes). So the "income" is a CREDIT and - note that it "did not go out"