If An Amount Is Recorded On The Side Of A T-Account / An Account

If an amount is recorded om the side of a T-Account or an Account depends upon two sides, i.e., either recorded on right side or left side of an account or a t-Account.

(i) An Amount Recorded On The Right Side Of An Account

An amount recorded on the right side of an Account is called credit side.

For Liabilities, Owner’s Equity and Revenue, credit side is a normal balance side for these accounts but for Assets and Expenses, credit side is not a normal balance side and on such side these accounts’s balances decrease.

Account balances of liabilities, owner’s equity and revenue increase on credit side.

(ii) An Amount Recorded On The Left Side Of An Account

An amount recorded on the left side of an account is called debit side.

For Assets and Expenses, debit side is a normal balance side for these accounts but for liabilities, owner’s equity and revenue, it is a negative or unfavorable balance side i.e., opposite to normal balance side.

Assets and expense account balances increase on debit side but for liabilities, owner’s equity and revenue, account balances decrease on debit side as it is not a normal balance side for these accounts.

So, we can say that amounts to be recorded either on the normal balance side or opposite to the normal balance side of an account or a t-account.

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If An Amount Is Recorded On The Side Of An Account / A T Account Whether Debit Or Credit, Then The Normal Balance Side Is The Side Where Such Account Increases

If An Amount Is Recorded On The Side Of An Account / A T Account, Then The Opposite To The Normal Balance Side Is Such Side For That Particular Account Where It Decreases.