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 |