6 ms·
> Rules: Left side of equation: Increase in an asset: debit. Decrease in an asset: credit. This is the non-intuitive part for me. Everything else seems logical
by everlost 6y ago
> Rules: Left side of equation: Increase in an asset: debit. Decrease in an asset: credit.
This is the non-intuitive part for me. Everything else seems logical. Why would you debit an asset when it increases?
- wrycoder 6y agoBecause an asset account carries a debit balance. Debts aren’t good or bad. Just remember: “debits come in, credits go out”.