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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Barbara,

Thanks for visiting my site!

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!

Need any other help just drop me a line, and please come back and visit often. Have you checked out my blog?

Kathy

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