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Accounting AI Solver debits and credits

Journal entries, adjusting entries, depreciation, inventory and ratios — worked from the accounting equation, with each step and principle explained.

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Result

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How it works through accounting questions

  • From the accounting equation

    Every transaction is tied back to assets = liabilities + equity, so you see why both sides stay balanced.

  • Numbered journal lines

    Entries are written as debit and credit lines with account names and amounts, easy to copy into your own ledger.

  • Principles named

    Accrual, matching, revenue recognition or historical cost — the one being applied is stated, and GAAP–IFRS differences are noted where they matter.

  • Calculations shown

    Depreciation, cost of goods sold, inventory methods and ratios are worked out line by line.

Debits and credits: the rules in one place

  • Assets and expenses

    Increase with a debit, decrease with a credit. Cash received is a debit to Cash; rent paid is a debit to Rent Expense.

  • Liabilities, equity and revenue

    Increase with a credit, decrease with a debit. A bank loan received is a credit to Notes Payable; a sale is a credit to Sales Revenue.

  • Every entry balances

    Total debits must equal total credits in each entry. If they don't, an amount or an account is wrong.

  • Contra accounts

    Accumulated Depreciation is a contra-asset with a normal credit balance; it lowers the equipment's book value without touching its original cost.

Worked example: straight-line depreciation

Equipment costs 50,000, has a 5-year useful life and an estimated salvage value of 5,000. Straight-line depreciation spreads the depreciable base evenly: (cost − salvage value) ÷ useful life = (50,000 − 5,000) ÷ 5 = 9,000 per year.

The year-one adjusting entry has two lines. Line 1: debit Depreciation Expense 9,000. Line 2: credit Accumulated Depreciation 9,000. The expense lowers net income under the matching principle, and the contra-asset brings the equipment's book value down to 41,000 at year end.

Quick check: after five years, accumulated depreciation reaches 45,000 and book value equals the 5,000 salvage value — exactly what the method is designed to do. For rate-based methods such as double-declining balance, the free percentage calculator speeds up the yearly figures.

Using the accounting solver

  1. Paste the transaction or problem

    Include dates, amounts and account names, or attach a picture of the exercise (5 MB max).

  2. Set level and style

    College / university is preselected; high school suits intro bookkeeping. Guiding questions first is a good style for practice.

  3. Read the entries and reasoning

    See the principle, then each debit and credit line, then any supporting calculation.

  4. Balance and practice

    Confirm that debits equal credits, record the practice transaction, and continue in AI Chat for related entries.

Frequently asked questions

It explains the treatment your question points to and notes where US GAAP and IFRS differ — for example, LIFO inventory is allowed under US GAAP but not under IFRS. If your course follows one framework, say so in the question.

It can walk you through preparing an income statement, balance sheet or cash flow statement from a trial balance you type in. Very long problems with many accounts are better split into parts so each step can be checked.

No. It only sees the text you paste and the images you upload, so copy in the relevant balances or attach a screenshot of the exercise.

Pro plan members have it included* (*fair use: up to 300 runs a day across the writing, study and code tools). Without a plan, the cost is 2 credits for a typed question and 3 for one with a photo. Not signed in yet? The start of an answer is free to preview.

That is up to your course. Learn the method from the worked entries, check your own answers, and follow your instructor's rules — see Academic Integrity.

Yes. AI can pick the wrong account or misapply a principle, so make sure each entry balances and matches the account names in your textbook.

Handy for accounting classes

Unsure which account to debit?

See the entry, the principle and the math, then record a practice transaction yourself.

Explain my accounting question
  • Numbered debit and credit lines
  • Principle behind each entry
  • Every calculation shown