Normal Placement in
Account Name Type Notes / Examples
Balance Equation
Includes petty cash,
Cash Asset Debit Asset
bank deposits
Accounts Receivable Asset Debit Asset Amounts customers owe
Supplies Asset Debit Asset Office or store supplies
Prepaid rent, prepaid
Prepaid Expenses Asset Debit Asset
insurance
Merchandise Inventory Asset Debit Asset Goods held for sale
Office or store
Equipment Asset Debit Asset
equipment
Building Asset Debit Asset Long-term property
Land Asset Debit Asset Non-depreciable
Accumulated Always paired with
Contra-Asset Credit Asset (reduces it)
Depreciation related asset
Allowance for Doubtful For uncollectible
Contra-Asset Credit Asset (reduces it)
Accounts receivables
Amounts owed to
Accounts Payable Liability Credit Liability
suppliers
Notes Payable Liability Credit Liability Written promise to pay
Wages owed to
Salaries Payable Liability Credit Liability
employees
Cash received before
Unearned Revenue Liability Credit Liability
earning it
Owner’s Capital Equity Credit Owner’s Equity Owner’s investments
Equity
Owner’s Drawings Debit Owner’s Equity Withdrawals by owner
(contra)
Revenue
Service Revenue Credit Owner’s Equity Earnings from services
(Equity)
Revenue
Sales Revenue Credit Owner’s Equity Merchandise sales
(Equity)
Revenue Bank interest, loans
Interest Income Credit Owner’s Equity
(Equity) given
Expense
Salaries Expense Debit Owner’s Equity Cost of employee work
(Equity)
Expense
Rent Expense Debit Owner’s Equity Building/space cost
(Equity)
Expense
Utilities Expense Debit Owner’s Equity Electricity, water, etc.
(Equity)
Expense
Depreciation Expense Debit Owner’s Equity Asset cost allocation
(Equity)
Expense Uncollectible
Bad Debts Expense Debit Owner’s Equity
(Equity) receivables
Sales Returns and Contra- Debit Owner’s Equity Reduces sales revenue
Normal Placement in
Account Name Type Notes / Examples
Balance Equation
Allowances Revenue
📌 Debit/Credit Flashcard Sheet
(Read the cue → recall Dr or Cr instinctively)
Assets (e.g., Cash, Accounts Receivable, Equipment)
Increase: Debit
Decrease: Credit
💡 "When I get stuff → I Debit it."
Liabilities (e.g., Accounts Payable, Unearned Revenue, Loans Payable)
Increase: Credit
Decrease: Debit
💡 "When I owe more → I Credit it."
Owner’s Equity (Capital)
Increase: Credit
Decrease: Debit
💡 "My worth goes up → I Credit it."
Revenues (e.g., Service Revenue, Sales)
Increase: Credit
Decrease: Debit
💡 "I earn money → I Credit revenue."
Expenses (e.g., Rent Expense, Salaries Expense, Utilities)
Increase: Debit
Decrease: Credit
💡 "Spending money → I Debit expense."
Super Shortcut Triangle
If it’s an Asset or Expense, ↑ means Debit.
If it’s a Liability, Equity, or Revenue, ↑ means Credit.
