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  • Accounting Basics

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    Sonu Ponnal
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    Debit entries increase asset and expense accounts and decrease equity and liability accounts. Credit entries increase equity and liability accounts and decrease asset and expense accounts. Normal account balances are assets and expenses on the debit side and liabilities, equity, and revenues on the credit side, as entries are made to increase those account types.

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    Debit entries increase asset and expense accounts and decrease equity and liability accounts. Credit entries increase equity and liability accounts and decrease asset and expense accounts. Normal account balances are assets and expenses on the debit side and liabilities, equity, and revenues on the credit side, as entries are made to increase those account types.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views1 page

    Accounting Basics

    Uploaded by

    Sonu Ponnal
    Debit entries increase asset and expense accounts and decrease equity and liability accounts. Credit entries increase equity and liability accounts and decrease asset and expense accounts. Normal account balances are assets and expenses on the debit side and liabilities, equity, and revenues on the credit side, as entries are made to increase those account types.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Credit and debit basics in accounting

    Debit Increase in asset accounts Decrease in equity accounts Decrease in liability accounts

    Credit Decrease in asset accounts Increase in equity accounts Increase in liability accounts

    Increase in expense accounts Decrease in expense accounts

    Decrease in revenue accounts Increase in revenue accounts

    Normal Account Balances


    y y y y y y y

    The expense accounts carry normal account balance on the debit side The asset accounts carry normal account balance on the debit side The liability accounts carry normal account balance on the credit side The revenue accounts carry normal account balance on the credit side The equity accounts carry normal account balance on the credit side The accounts carry normal account balance on that side where the additions in those accounts are entered Financial statements represent the accounts on that side, where they carry normal account

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