Comments for assets as debits

Average Rating starstarstar

Click here to add your own comments

May 17, 2011
Debit or Credit
by: Anonymous

I don't think any of us who are trying to understand this stuff can understand why an increase to a bank account is a DEBIT. It has been adopted by accountants as a check on balances. All debits must equal all credits. When one account has a DEBIT it affects another account with a CREDIT.
It also has to do with the "Normal Balance" of an account. IE: Asset accounts have a Normal Debit Balance, meaning that they increase with a Debit.
Also, Expense Accounts have a Normal Debit Balance.
This account too increases with a debit.
All other accounts, Liability, Equity, and Revenue have a Normal Credit Balance, and Increase with a Credit.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Bookkeeping Questions and Answers.

Return to assets as debits.

Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you each month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.