Why Are Increases or Decreases in Revenue Or Income Accounts Recorded As Debits or Credits
Increase And Decrease In Revenue Accounts A ny increase in Revenues is credited according to the Rules of Debit and Credit . It is due to the fact that the favorable or positive balance of revenues / incomes is credit or on credit side of a ledger account. Any decrease in revenue accounts is resulted in the debit to revenue accounts as the negative or unfavorable balance is on debit side in a ledger account. It is due to the some special reasons such as in case of Post Closing Entries , Prepaid Income , etc.