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Accounting Concepts (Debits & Credits)

Posted by Saleem Mukati

The following chart indicates the normal balance or how each part of the equation is increased.

Normal Balance
Increased by


Accounting Equation
(General Ledger)
Debits (DR)

Assets
Credits (CR)

Liabilities
Fund Balance

Now that we know what the normal balances are, let's take another look at the accounting equation.

    Assets - Liabilities = Fund Balance

restated, placing debits on side and credits on the other :

    Assets (DR) = Liabilities (CR) + Fund Balance (CR)

    NOTE: Debits (DR) = Credits (CR)

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