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Keeping Your Debits and Credits Straight in QuickBooks Simple Start

Part of the QuickBooks Simple Start For Dummies Cheat Sheet

To keep track of your debits and credits in QuickBooks Simple Start, remember that the left (debit) is the natural balance for asset accounts, and the right (credit) is the natural balance for liability and owner’s equity accounts. Remember: Assets=Liabilities +Owner’s Equity. (The exceptions are contra accounts and expense accounts that add or deduct from other accounts to form a net amount.)

Account Type Debits Credits
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
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