What are Credit Accounts?

by Mathew Sakala
(Harare, Zimbabwe)


Victoria Falls, Zimbabwe

Q: What are credit accounts and could you show me a sample?


A:
Credit accounts are any accounts that normally occur on the right side, as credit means right side.

Examples of credit accounts:

  • Capital (owner's equity)

  • Bank loan (liability)

  • Creditors (liability)

  • Bank overdraft (liability - you owe the bank)



See the lesson on T-accounts for more information.

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