I do need to know the Assets=Liabilities+Equity.
by Barbara Knitter
(Jasper, Alabama, US)
I can't figure out which is debit and which is credit on almost all of these accounts
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The debits / credits thing can get a bit cloudy. Let me see if I can clear it up for you.
The equation Assets = Liabilities + Equity will help us out.
Assets are debits, meaning increasing an asset is a debit entry, decreasing an asset is a credit entry.
The other side of the equation is the opposite. Increasing a liability or an equity account is a credit entry, and decreasing is a debit entry.
I think that's the easiest way to remember.
Hope that helps you out Barbara!
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