Do Debit Mean An Increase To An Account And Credit Mean A Decrease To An Account

Do Debit Mean An Increase To An Account And Credit Mean A Decrease To An Account? / Increase And Decrease In Accounts

No, debit means the left side of an Account while credit means the right side of an account. An account balance increases or decreases on debit side or credit side, it all depends upon the types of accounts.

For assets and expenses accounts, there is an increase in accounts balances of these accounts on debit side as it is a favorable or normal side for these accounts while these accounts balances decrease on credit side.

For liabilities, equity and revenue account balances, there is an increase in accounts balances of these accounts on credit side as it is a normal balance for these accounts while on credit side of T Accounts, there is a decrease in accounts balances of these accounts.

So, we can say that debit means the left side of an account and credit side is the right side of a T Account. However, assets, expenses and losses are increased on debit side and decreased on credit side while liabilities, equity, revenues or gains are increased on credit side and decreased on debit side of T Account.