DEBIT vs CREDIT FRAMEWORK
Use this framework to determine the appropriate side of the journal entry for each account. Identify the account type (A, L, SE, R, E, or D) and assess whether the transaction results in an increase or decrease to that account.
DEBIT
Increases: A, E, D
Decreases: L, SE, R
Decreases: L, SE, R
CREDIT
Increases: L, SE, R
Decreases: A, E, D
Decreases: A, E, D
BALANCE SHEET ACCOUNTS
Assets (A)
Liabilities (L)
Shareholders' Equity (SE)
INCOME STATEMENT ACCOUNTS
Expenses (E)
Revenues (R)
STATEMENT OF RETAINED EARNINGS
Dividends (D)
Retained Earnings (SE)