With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

Question

Quizplus · Accepted Answer

This is known as the normal balance of an account and follows the accounting equation (Assets = Liabilities + Equity). For example, asset accounts have a normal debit balance, so an increase in assets would be recorded on the debit side of the T account. Liabilities and equity accounts have a normal credit balance, so an increase in liabilities or equity would be recorded on the credit side of the T account.

With Few Exceptions, the Balance of All Accounts Should Be