Concept explainers
Increases are recorded on which side of asset, liability, and owner’s equity accounts?
Mention the side of the asset, liability and owner’s equity account in which the increases are recorded.
Explanation of Solution
Guidelines for debit and credit
For all increase in assets, expenses and losses and all decrease in liabilities, owners’ equities, it is debited.
For all increase in liabilities, owners’ equities and decrease in assets, expenses and losses, it is credited.
The side of the asset account in which increases are recorded is as shown below:
Assets | |
Debit (+) |
Credit (-) |
Increase (Normal balance) |
Decreases |
Table (1)
The side of the liability account in which increases are recorded is as shown below:
Liabilities | |
Debit (-) |
Credit (+) |
Decrease |
Increases (Normal balance) |
Table (2)
The side of the owner’s equity account in which increases are recorded is as shown below:
Owner’s Equity | |
Debit (-) |
Credit (+) |
Decrease |
Increases (Normal balance) |
Table (3)
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