What Are The Two Main Or Primary Accounting Rules That Maintain Or Set The Increase And Decrease Of Different Account Balances
What Are The Two Accounting Rules That Regulate Increases And Decreases Of Account Balances? In fact, there are two accounting rules which describe the increase and decrease of an account balance in a T-Account or Ledger’s Account . (i) An account balances increases on positive, normal, usual or favorable side of a ledger account (ii) An account balances decreases on negative, opposite, unusual or unfavorable side of a ledger’s account There are five types of Accounts i.e., Assets, Expenses, Liabilities, Owner’s Equity or Equity and Revenues. Asset account balances increase on debit side or left side of asset’s t account but it decreases on credit side or right side of asset’s t account or asset’s ledger account. Assets are permanent account and account balances of assets are transferred to balance sheet. Expenses account balances increase on debit side or left side of ledger’s account and decrease on the right side of a t-account. However, expenses accounts are closed as ...