Buying equipment with cash
Equipment is an asset, so increasing equipment means debit Equipment. Cash is also an asset, so decreasing cash means credit Cash.
Accounting Checker
Debit/Credit Checker
Choose an account type and whether it increases or decreases to see whether you should debit or credit the account.
Answer
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Choose an account type.
Rules
Debit and credit rules
Debits and credits do not always mean increase or decrease. The effect depends on the account type and its normal balance.
| Account type | Normal balance |
|---|---|
| Asset | Debit |
| Liability | Credit |
| Equity | Credit |
| Revenue | Credit |
| Expense | Debit |
| Dividends/Drawings | Debit |
Worked examples
Simple examples
Earning service revenue
Revenue has a normal credit balance, so increasing service revenue means recording a credit.
Common mistakes
Mistakes to avoid
Thinking debit always means increase
Thinking credit always means decrease
Mixing up assets and expenses
Forgetting that revenue has a normal credit balance
Forgetting that liabilities increase with credits
Related tools
Continue checking accounting basics
Use the accounting equation and trial balance tools to keep practicing the same double-entry ideas.
FAQ
Debit/Credit Checker FAQs
What is a debit?
A debit is the left side of an accounting entry. It increases assets, expenses, and dividends or drawings.
What is a credit?
A credit is the right side of an accounting entry. It increases liabilities, equity, and revenue.
Do debits always increase accounts?
No. Debits increase some accounts and decrease others. It depends on the account type.
Which accounts increase with debits?
Assets, expenses, and dividends or drawings increase with debits.
Which accounts increase with credits?
Liabilities, equity, and revenue increase with credits.
Can this checker help with accounting homework?
Yes. It can help you check the direction of an account change, but you should still explain your reasoning.