Stop Guessing Your
Debits and Credits
The ultimate cheat sheet for students,
bookkeepers, and business owners
Accounting Entry:
Debit
Credit
Why?
Understanding Debits and Credits
The fundamental rules you need to know:
Assets
Normal Balance: DebitDebit: Increases
Credit: Decreases
Examples:
Cash, Bank, Accounts Receivable, Inventory, Equipment, Vehicles
Liabilities
Normal Balance: CreditDebit: Decreases
Credit: Increases
Examples:
Accounts Payable, Loans, Wages Payable, Tax Payable
Equity
Normal Balance: CreditDebit: Decreases
Credit: Increases
Examples:
Share Capital, Retained Earnings, Owner's Equity
Income
Normal Balance: CreditDebit: Decreases
Credit: Increases
Examples:
Sales Revenue, Service Revenue, Interest Income
Expenses
Normal Balance: DebitDebit: Increases
Credit: Decreases
Examples:
Rent, Wages, Utilities, Depreciation, Insurance
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