Difference between revisions of "Accounting Equation"

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{| class="wikitable"
 
{| class="wikitable"
 +
|+Expense accounts      Income accounts
 
|-
 
|-
 
! scope="col"| Dr
 
! scope="col"| Dr
Line 34: Line 35:
 
! scope="col"| Dr
 
! scope="col"| Dr
 
! scope="col"| Cr
 
! scope="col"| Cr
!
 
 
|-
 
|-
 
|Increases <br> <br> '''Normal <br> Balance'''
 
|Increases <br> <br> '''Normal <br> Balance'''

Latest revision as of 00:37, 8 February 2016

Assets = Liabilities + Equity


Therefore:

All asset accounts   =   All liability accounts   +   All equity accounts
Dr Cr Dr Cr Dr Cr
Increases

Normal
Balance
Decreases Decreases Increases

Normal
Balance
Decreases Increases

Normal
Balance
Expense accounts      Income accounts
Dr Cr Dr Cr
Increases

Normal
Balance
Decreases Decreases Increases

Normal
Balance