Debit and Credit Rules
Assets
Liabilities
=
Asset Accounts
Debit
+
+
Liability Accounts
Credit
-
Debit
-
Owner’s Equity
Owner’s Capital Account
Credit
+
Debit
-
Credit
+
Temporary Owner’s Equity Accounts
Expense Accounts
Debit
+
Drawing Accounts
Credit
-
Debit
+
Debits
+
+
+
-
Account
Asset
Liability
Owner’s Capital
Revenue
Drawing
Expense
If an account is increased with
a debit, it will be decreased
with a credit.
Credit
-
Assets
Withdrawal(Drawing)
Expenses
Liabilities
Owner’s Capital
Revenue
Increase Side
Debit
Credit
Credit
Credit
Debit
Debit
Revenue Accounts
Debit
-
Credits
+
+
+
Decrease Side
Credit
Debit
Debit
Debit
Credit
Credit
If an account is increased with a
credit, it will be decreased with a
debit.
Credit
+
Normal Balance
Debit
Credit
Credit
Credit
Debit
Debit
Since there are usually more
increases than decreases in an
account, the normal balance is the
same as the increase side.