Keeping Your Debits and Credits Straight in QuickBooks Simple Start

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2016-03-26 21:47:46

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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