ACCOUNTING 6058 SUPPLEMENTAL MATERIAL

NORMAL ACCOUNT BALANCE LEARNING AID

ASSETS Normal Balance DEBIT
Increased with a Debit
Decreased with a Credit
LIABILITIES Normal Balance CREDIT
Increased with a Credit
Decreased with a Debit
OWNERS EQUITY Normal Balance CREDIT
Increased with a Credit
Decreased with a Debit
REVENUES Normal Balance CREDIT
Increased with a Credit
Decreased with a Debit
EXPENSES Normal Balance DEBIT
Increased with a Debit
Decreased with a Credit
ACCOUNTING EQUATION (Note: Normal Balances are highlighted)
Basic: Assets (Dr.) = Liabilities (Cr.) + wner!s "#$it% (Cr.)
Expanded: Assets (Dr.) = Liabilities (Cr.) + Ca&ital (Cr.) 'ithdrawals (Dr.)
+ (e)en$es (Cr.) "*&enses (Dr)

Th T!"#$ DEBITS M%&" A$'#(& E)%#$ "h T!"#$ CREDITS (D!%*$ E+"r(,