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.

So, we conclude to the question, “Why A Debit Entry / Credit Entry Always Decreases / Increases The Balance Of Liabilities, Owner’s Equity And Revenues And Increases Assets And Expense Accounts”? into two aspects as:

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

On the opposite, all assets and expenses accounts have normal, usual, favorable or 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.