How to Keep Your Debits and Credits Straight with QuickBooks 2009
Part of the QuickBooks 2009 For Dummies Cheat Sheet
In any accounting system, including QuickBooks, the natural balance for asset accounts is on the left (debit), and the natural balance for liability and owner’s equity accounts is on the right (credit). The exceptions are contra accounts and expense accounts that add or deduct from other accounts to form a net amount. The following table lists common accounts and what you put in their debit and credit columns.
|Assets||Increase asset accounts||Decrease asset accounts|
|Liabilities||Decrease liability accounts||Increase liability accounts|
|Owner’s equity||Decrease owner’s equity accounts||Increase owner’s equity accounts|
|Income||Decrease income accounts||Increase income accounts|
|Expenses||Increase expense accounts||Decrease expense accounts|