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The normal balance of an account dictates whether a debit or credit makes the account increase or decrease.
- A debit will make it increase.
- A credit will make it decrease.
- A credit will make it increase.
- A debit will make it decrease.
The left side of the accounting equation has a normal debit balance.
Assets = Liabilities + Equity
The right side of the accounting equation has a normal credit balance.
Assets = Liabilities + Equity
