What Does A Positive Or A Negative Sign Mean In Accounting
A Positive (Plus or +) or N egative (Minus or -) mean that there is an increase in an Account or a decrease in an account. In other words, if there is a debit or credit favourable side for an account, then the amount of such account will be increased and if there is a debit or credit unfavourable side for an account, then the amount of such account will be decreased. Positive Sign shows that we add two or more debit amounts or two more credit amounts of Different Types of Accounts in a ledger account while negative sign shows we subtract two or more debit and credit amounts of different types of accounts. For example, the positive side for an Asset Account is debit, so when we add some debit amount in it , then, the resulted amount will increase the balance on debit side and it shows a positive sign in asset. It means that the amount is positive and also it will surely increase the value of asset on B alance Sheet . Example:- ...