Which of the following explains the debit and credit rules relating to the recording of revenue and expenses?

مندرجہ ذیل میں سے کون محصول اور اخراجات کی ریکارڈنگ سے متعلق ڈیبٹ اور کریڈٹ قواعد کی وضاحت کرتا ہے؟

Revenue increases owner's equity and is recorded by a credit; expenses decrease owner's equity and are recorded as debits.

Expenses appear on the left side of the balance sheet and are recorded by debits; revenue appears on the right side of the balance sheet and is recorded by credits.

Expenses appear on the left side of the income statement and are recorded by debits; revenue appears on the right side of the income statement and is recorded by credits.

None of these.

Explanation

Revenue increases owner’s equity and is recorded as a credit.

Expenses decrease owner’s equity and are recorded as a debit.