Are Account Balances Debits or Credits
For each type of account, the balance is either a debit or a credit. When you post a transaction, the debit or credit amount increases or decreases.
| Account Type | Balance | Post Debit | Post Credit |
|---|---|---|---|
|
Assets |
Debit | Increase | Decrease |
|
Liabilities |
Credit | Decrease | Increase |
|
Net Worth |
Credit | Decrease | Increase |
|
Revenue |
Credit | Decrease | Increase |
|
Expenses |
Debit | Increase | Decrease |