Account
place where all increases and decreases in financial statement items are recorded
T-Account Parts
1. top (heading) - place account name here
2. left side
3. right side
debit
the left side of an account
credit
the right side of an account
debit balance
if debits are greater than credits, the account will have a
credit balance
If credits are greater than debits, the account will have a
normal balance
the side of the account you will find the end balance on, same as whatever side the increase is on
buying on account
not paying right now so transaction has no effect on cash account
Asset
increase - debit
decrease - credit
normal balance - debit
Liability
increase - credit
decrease - debit
normal balance - credit
Equity
increase - credit
decrease - debit
normal balance - credit
Revenue
increase - credit
decrease - debit
normal balance - credit
Expense
increase - debit
decrease - credit
normal balance - debit