Why Are Increases or Decreases in Revenue Or Income Accounts Recorded As Debits or Credits

Increase And Decrease In Revenue Accounts

Any increase in Revenues is credited according to the Rules of Debit and Credit. It is due to the fact that the favorable or positive balance of revenues / incomes is credit or on credit side of a ledger account.

Any decrease in revenue accounts is resulted in the debit to revenue accounts as the negative or unfavorable balance is on debit side in a ledger account. It is due to the some special reasons such as in case of Post Closing Entries, Prepaid Income, etc.