Which Accounts Are Increased / Decreased By Debits And Credits

For better understanding, we can divide this question into four parts:

1. Which Accounts Are Increased By Debits

According To The Rules of Debit And Credit, Assets and Expenses Accounts are increased by debits as these have favourable or positive balances on debit side.

2. Which Accounts Are Decreased By Debits

Liabilities, Equity And Income are decreased by debits as these have unfavourable or negative balance on debit side.

3. Which Accounts Are Increased By Credits

Liabilities, Equity and Income are increased by credits.

4. Which Accounts Are Decreased By Credits

Assets and Expenses are decreased by credits.