Please visit our COVID-19 Resources page for useful payroll and reference information. During this time, when many companies are forced to telework, AccountEdge Hosted may be a good option. Host your company file to be accessed remotely from any device, for as long as you need. You can go back to your regular setup when you no longer need remote accessibility. If you’d like to discuss that or any other teleworking solution with a product specialist, please call 800.322.6962. Be safe.

  • Section: Accounts
  • Last updated: June 28, 2019, 3:27 p.m.

Debits & Credits by Account

Balance Sheet Accounts

Assets = Liabilities + Owner's Equity
or
Assets -- Liabilities = Owners Equity

1-xxxx Asset Account - Anything you own that has value. E.g., Checking, Accounts Receivable, Inventory, Fixed Assets (furniture, computers, etc

  • DEBIT increases
  • CREDIT decreases

2-xxxx Liability Account - Money you owe. E.g., Accounts Payable, Credit Cards, Taxes, Loans

  • DEBIT decreases
  • CREDIT increases

3-xxxx Owner's Equity Accounts - E.g., Retained Earnings, Current Year Earnings, Historical Balancing

  • DEBIT decreases
  • CREDIT increases

Profit & Loss or Income Statement Accounts

Income -- Cost of Goods Sold -- Expenses = Profit or (Loss)

4-xxxx Income Accounts - E.g., Money received from sales or other sources

  • DEBIT decreases
  • CREDIT increases

5-xxxx Cost of Goods Sold Accounts - E.g., Expenses incurred to purchase an item or make an item sold

  • DEBIT increases
  • CREDIT decreases

6-xxxx Expense Accounts - E.g., Expenses such as rent, office supplies, wages, etc.

  • DEBIT increases
  • CREDIT decreases