Balance Sheet Accounts
Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owners Equity
1-xxxx Asset Account - Anything you own that has value. E.g., Checking, Accounts Receivable, Inventory, Fixed Assets (furniture, computers, etc
DEBIT increases
CREDIT decreases
2-xxxx Liability Account - Money you owe. E.g., Accounts Payable, Credit Cards, Taxes, Loans
DEBIT decreases
CREDIT increases
3-xxxx Owner's Equity Accounts - E.g., Retained Earnings, Current Year Earnings, Historical Balancing
DEBIT decreases
CREDIT increases
Profit & Loss or Income Statement Accounts
Income - Cost of Goods Sold - Expenses = Profit or (Loss)
4-xxxx Income Accounts - E.g., Money received from sales or other sources
DEBIT decreases
CREDIT increases
5-xxxx Cost of Goods Sold Accounts - E.g., Expenses incurred to purchase an item or make an item sold
DEBIT increases
CREDIT decreases
6-xxxx Expense Accounts - E.g., Expenses such as rent, office supplies, wages, etc.
DEBIT increases
CREDIT decreases
7-xxxx NOT APPLICABLE - AccountEdge does not use account numbers that start with 7-
8-xxxx Other Income Accounts - E.g., Income such as interest, purchase discounts, etc.
DEBIT decreases
CREDIT increases
9-xxxx Other Expense Accounts - E.g., Expenses such as interest, incentives, etc.
DEBIT increases
CREDIT decreases