Which Accounts Are Increased / Decreased By Debits And Credits
For better understanding, we can divide this question into four parts: 1. Which Accounts Are Increased B y Debits According To The Rules of Debit And Credit , Assets and Expenses Accounts are increased by debits as these have favourable or positive balances on debit side. 2. Which Accounts Are Decreased B y Debits Liabilities , Equity And Income are decreased by debits as these have unfavourable or negative balance on debit side. 3. Which Accounts Are Increased B y Credits Liabilities, Equity and Income are increased by credits. 4. Which Accounts Are Decreased B y Credits Assets and Expenses are decreased by credits.