Which Of The Following Accounts Is Decreased With A Debit

Retained Earnings Account

Retained Earnings is decreased with a debit as the negative or unusual balance of retained earnings is on the debit side while it increases with a credit as it has a normal, positive or usual balance on the credit side. A Retained Earnings account is a permanent account as it is transferred from accounting period to another.

In T-Account, the right side or credit side is the normal balance for retained earnings account where its balances increases while the left side or the debit side is the unusual side i.e., the side opposite to normal side, and it is the side where retained earnings balance decreases.