Practice question · Sort into groups
Which accounts grow with a debit, and which with a credit?
Groups: Grows with debit · Grows with credit
- Share Capital (equity)
- Equipment (asset)
- Sales Revenue
- Cash (asset)
- Accounts Payable (liability)
- Rent Expense
Hints
- Two families grow on the left, three on the right.
- Expenses behave like assets in this respect, not like revenue.
Show the answer
Grows with debit: Cash (asset), Rent Expense, Equipment (asset)
Grows with credit: Accounts Payable (liability), Sales Revenue, Share Capital (equity)
Why
Assets and expenses are the left-side family (debit to increase). Liabilities, equity, and revenue are the right-side family (credit to increase). Learn the family, and the rule covers every account.
Practise Double-Entry Bookkeeping
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