Q5. Credit accounts
Which transactions are recorded on the credit side of a journal entry?
A5. Assets + Expenses = Liabilities + Equity + Revenues
(1) Increases in liability accounts are recorded on the credit side.
(2) Increases in equity accounts are recorded on the credit side.
(3) Increases in revenue accounts are recorded on the credit side.
(4) Decreases in asset accounts are recorded on the credit side.
(5) Decreases in expense accounts are recorded on the credit side.
[Note]
1. Liabilities, equity, revenues: Increases are recorded on the credit side.
2. Liabilities, equity, revenues: Decreases are recorded on the debit side.
3. Assets and expenses: Increases are recorded on the debit side.
4. Assets and expenses: Decreases are recorded on the credit side.