In Abacus Accounting, you will find yourself frequently debiting and crediting accounts. Don’t worry if you are confused about debits and credits – so is everyone else! But here is a table that will clear everything up.
|
Type of Account |
Account Prefix |
Debit |
Credit |
|
Asset |
1 |
Increase |
Decrease |
|
Liability |
2 |
Decrease |
Increase |
|
Capital |
3 |
Decrease |
Increase |
|
Revenue |
4 |
Decrease |
Increase |
|
Expense |
5 |
Increase |
Decrease |
For example:
If you DEBIT an ASSET account, you INCREASE the balance.
If you CREDIT an ASSET account, you DECREASE the balance.