DEBIT AND CREDIT RULE #2:For every debit, there is a credit. Paying close attention to the topics discussed above, this eternal rule in accounting has an identical goal as the basic accounting equation: KEEP BOTH SIDES THE SAME. Whatever happens. The terms debit and credit are used in recording business transactions that will indicate increases or decreases in a specific account, be it an asset, liability, equity or principal, income, expenses and owner's drawings. Being on the left side of the equation, all assets will increase on the left side or debit side and its corresponding "partner" account, such as an owner's investment, will take the right side or credit side. Back to The Tiny Siren Smiles Photo Booth, one of the transactions made by the company was the purchase of an asset (go back to link transaction #2) using another asset of the company:Both are assetsDEBIT CREDITAccount AmountAccount AmountCamera 25,000Cash 25,000Resource and LiabilitiesIn the first illustration, the Little Mermaid has placed increases in House (an asset) on the debit side and decreases in Cash (another asset) on the credit side. It therefore follows that increases and decreases should be recorded oppositely as assets since liabilities and equity are both on the right side of the equation. So that when the Little Mermaid purchases another asset on account (refer to transaction 3) the result is: DEBIT CREDIT Account Amount Account Amount Computer Equipment 28,000 Accounts Payable 28,000 Owner's Equity or Capital As already mentioned, the two elements that increase net worth or business capital are investments and revenues. While the other two items that determine net worth or capital t...... half of the paper ......IT3. Remember rules no. 1 and 2.4. Practice makes perfect. This is a do-it-yourself course.Works Citedhttp://documents.clubexpress.com/documents.ashx?key=7ZPfhrgSH4ej5qOo06gTZ1j%2FWfzYw%2BhpXBNOQ%2BbRiWgYV1UQpbPezRxbi%2FPDVo7X 2002 Association of Chartered Accountants in the United States 341 Lafayette St., Ste . 4246 • New York, NY10012-2417 • (212) 334-2078Darrell Mullis and Judith Orloff, The Accounting Game (Basic Accounting Fresh from the Lemonade Stand) Updated and Revised; Naperville, Illinois 60567; 2008 – published by Sourcebooks, Inc. Robert T. Kiyosaki, Sharon L. Lechter, Rich Dad Poor Dad, 2002 David Marshall, Bean CounterWeygandt, Accounting PrinciplesThe Entrepreneur's GuideBook by Patsula Media, smallbusinesstown.com, Personal Planning Guidebook#28http:// mycasite .com/for_web/pages/articles/industry/pdfs/23_brief_history_accounting.pdf