Are Account Balances Debits or Credits
For each type of account, the balance is either a debit or a credit. When you post a transaction, the debit or credit amount increases or decreases.
Account Type | Balance | Post Debit | Post Credit |
---|---|---|---|
Assets | Debit | Increase | Decrease |
Liabilities | Credit | Decrease | Increase |
Net Worth | Credit | Decrease | Increase |
Revenue | Credit | Decrease | Increase |
Expenses | Debit | Increase | Decrease |