Debits and credits for standards students: the entries behind each standard

Students often learn a standard's rules but freeze when asked for the double entry. The entries are where the rules turn into numbers, and they are where most exam marks are won or lost. Here are ten entries worth knowing by heart, with a workbook to test yourself.

By Muhammad Bilal, Chartered Accountant. Reviewed by Awais Jameel, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

Most accounting standards come down to a few journal entries. This guide sets out ten of the most common, covering IAS 2, IAS 16, IAS 37, IFRS 15, IFRS 16, IFRS 9 and IAS 12, each with the debit, the credit and the amount. If you can post these entries from memory and explain why, you understand the core of each standard.

At a glance

Entries covered
10
Standards
IAS 2, 16, 37 and 12; IFRS 9, 15, 16
Amounts
Worked out for you
Practice
Excel workbook with instant checks
Best for
ACCA, CA and CPA students
Rule of thumb
Find the asset or liability first
Debits and credits for standards students: the entries behind each standardEntries covered: 10; Standards: IAS 2, 16, 37 and 12; IFRS 9, 15, 16; Amounts: Worked out for you; Practice: Excel workbook with instant checks; Best for: ACCA, CA and CPA students; Rule of thumb: Find the asset or liability first.KEY FACTS AT A GLANCEDebits and credits for standards students: theentries behind each standardEntries covered10StandardsIAS 2, 16, 37 and 12;IFRS 9, 15, 16AmountsWorked out for youPracticeExcel workbook withinstant checksBest forACCA, CA and CPA studentsRule of thumbFind the asset orliability firstChecked against official sourcesTax BakersDebits and credits for standards students: the entries behind each standardEntries covered: 10; Standards: IAS 2, 16, 37 and 12; IFRS 9, 15, 16; Amounts: Worked out for you; Practice: Excel workbook with instant checks; Best for: ACCA, CA and CPA students; Rule of thumb: Find the asset or liability first.KEY FACTS AT A GLANCEDebits and credits for standardsstudents: the entries behind eachstandardEntries covered10StandardsIAS 2, 16, 37 and 12; IFRS 9, 15, 16AmountsWorked out for youPracticeExcel workbook with instant checksBest forACCA, CA and CPA studentsRule of thumbFind the asset or liability firstChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

How do you work out any entry?

Start with the balance sheet, not the income statement. Ask which asset or liability has changed, and by how much. That gives you one side of the entry. The other side is usually income, an expense, cash, or another asset or liability. This follows the Conceptual Framework, where income and expenses are defined as changes in assets and liabilities.

An example in full: a lease

IFRS 16: the lessee's first entriesIFRS 16: the lessee's first entriesDay 1: lease startsDebitCreditDr Right-of-use asset432.95Cr Lease liability432.95End of year 1: first paymentDebitCreditDr Interest expense21.65Dr Lease liability78.35Cr Cash100.00
A five-year lease of CU 100 a year at 5%: recognition, then the first payment split into interest and principal.

A company leases equipment for five years at CU 100 a year, paid at the end of each year, with a 5% discount rate. The present value of the payments is CU 432.95, which becomes both the right-of-use asset and the lease liability. At the end of year 1, interest is 5% of the liability, CU 21.65; the rest of the payment, CU 78.35, reduces the liability. The asset is depreciated separately, by CU 86.59 a year.

Ten entries worth knowing

StandardSituation (CU)DebitCreditAmount
IAS 2Writing inventory down to net realisable value: cost 10,000, NRV 7,000Cost of salesInventory3,000
IAS 16Annual depreciation: cost 50,000, five-year life, no residual valueDepreciation expenseAccumulated depreciation10,000
IAS 16Revaluing a building from 400,000 to 460,000Property, plant and equipmentRevaluation surplus (OCI)60,000
IAS 37Provision for a legal claim, best estimate 25,000Legal expenseProvision25,000
IFRS 15Customer pays 1,200 upfront for a 12-month subscriptionCashContract liability1,200
IFRS 15Revenue for the first month of that subscriptionContract liabilityRevenue100
IFRS 16Lease starts: five payments of 100 a year, 5% rateRight-of-use assetLease liability432.95
IFRS 16Interest for the first year of that leaseInterest expenseLease liability21.65
IFRS 9Expected credit loss of 2% on receivables of 200,000Impairment lossLoss allowance4,000
IAS 12Deferred tax on a taxable temporary difference of 80,000 at 25%Deferred tax expenseDeferred tax liability20,000

Why each entry looks the way it does

  • Inventory write-down: IAS 2 carries inventory at the lower of cost and net realisable value, so the asset falls and the loss goes to profit.
  • Depreciation: the cost of the asset is spread over its useful life; accumulated depreciation reduces the asset without touching its recorded cost.
  • Revaluation: under IAS 16's revaluation model, an increase goes to other comprehensive income and builds up a revaluation surplus in equity, unless it reverses an earlier loss.
  • Provision: IAS 37 requires a liability when an outflow is probable and can be estimated reliably.
  • Subscription: under IFRS 15, cash received before the service is a contract liability, released to revenue as the service is provided.
  • Lease: IFRS 16 puts the right to use the asset, and the obligation to pay for it, on the balance sheet.
  • Expected credit loss: IFRS 9 reduces receivables through a loss allowance, usually measured with a provision matrix, so the receivable itself stays at its invoiced amount.
  • Deferred tax: IAS 12 recognises the tax that will be payable when a temporary difference reverses; US GAAP differs in places, see IAS 12 vs ASC 740.

Practise them

The Journal entries practice workbook (Excel) sets out these ten situations. Choose the debit and credit accounts from a list and type the amount; each answer gets an instant tick or cross, and a score tile adds up your result. The amounts are calculated in the workbook, so you can change the figures and practise again.

Common mistakes

  • Crediting revenue when cash arrives before the service is provided.
  • Reducing an asset directly for depreciation or credit losses instead of using a contra account.
  • Putting a revaluation gain through profit instead of other comprehensive income.
  • Recording the whole lease payment as an expense.

Where to go next

For revenue in depth, read the IFRS 15 five-step model. For the order to learn the standards in, see the study roadmap.

Need help applying the standards?

Our Chartered Accountants help finance teams and students apply IFRS and US GAAP to real transactions.

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Questions people ask

What is the journal entry for depreciation?

Debit depreciation expense and credit accumulated depreciation.

What is the journal entry when a customer pays in advance?

Debit cash and credit contract liability. Revenue is recognised later, as the goods or services are provided.

What is the journal entry for a lease under IFRS 16?

At the start, debit right-of-use asset and credit lease liability with the present value of the payments.

How do I record an expected credit loss?

Debit impairment loss and credit loss allowance, a contra account to receivables.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IFRS Foundation: Who uses IFRS Accounting Standards?
  2. IFRS Foundation: IFRS 15 Revenue from Contracts with Customers

Rules and fees change. If you are reading this long after October 4, 2026, confirm the figures with the source before you rely on them.

Accounting standardsAccounting standards study roadmap for ACCA, CA and CPA studentsAccounting standardsThe IFRS Conceptual Framework explainedIFRS 15The IFRS 15 five-step model with examples

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This guide is general information. It is not tax or legal advice for your situation.