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 |
