What Must Be Done If A Transaction Increases Or Decreases The Right Side Of The Accounting Equation

A Debit Entry / Credit Entry Always Decreases / Increases The Balance Of An Account

Is A Debit Entry Always Decreases / Increases The Balance Of An Account?

A debit entry does not always decrease the balance of an Account. It all depends upon the Types of Accounts involved in a Transaction.

For Liabilities, Owner’s Equity and Revenues, a debit entry always decreases the balances of these accounts but for Assets and Expenses Accounts, a debit entry always increases the balances of these accounts according to the Rules of Debits And Credits.

Is A Credit Entry Always Increases / Decreases The Balance Of An Account?

On the other hand, a credit entry always increases the balances of liabilities, owner’s equity and revenues but decreases the assets and expense accounts.

Why A Debit Entry / Credit Entry Always Decreases / Increases The Balance Of Liabilities, Owner’s Equity And Revenues And Increases Assets And Expense Accounts?

As the normal, unusual, favorable or positive balance of liabilities, owner’s equity and revenue accounts is a credit balance, so these decrease for a debit entry and increase for a credit entry.

On the opposite, all assets and expenses accounts have normal, usual, favorable or a positive debit balance, so these accounts always increase with a debit entry and decrease with a credit entry as assets and expense accounts have unusual, unfavorable or a negative credit balance in a T-Account.