PSA L&P - Accounts: What is the typical balance for each account type, debit or credit?

Debit or Credit?

According to generally accepted accounting procedures, the ParishSOFT Ledger & Payables software supports the entry of debits and credits (pluses and minuses) to affect account balances.  The effect of a debit or credit on a specific account type is shown in the table below:


 Account Type Typical Account Typical Balance   DEBIT Effect  CREDIT Effect 
  Asset  Checking/Savings  Debit  + Increase  - Decrease
 Liability  Mortgage  Credit   - Decrease  + Increase
 Net Asset  Equity  Credit   - Decrease  + Increase
 Income  Offerings  Credit   - Decrease  + Increase
 Expense         Telephone Charges  Debit   + Increase  - Decrease
 Dedicated  Memorial Fund  Credit   - Decrease  + Increase

Some common Journal Entry transactions are:


· Bank Account charges.
Account         Debit         Credit         Comments
Checking                          3.00         Bank Charges
Office Expense  3.00                         Bank Charges

· Interest on a savings account.
Account         Debit         Credit         Comments
Savings         125.00                         Interest - July
Interest Income              125.00         Interest - July

· Telephone transfer of money from savings to checking.
Account         Debit         Credit         Comments
Savings                          900.00        Tel. Transfer 9/8
Checking         900.00                        Tel. Transfer 9/8

· Record employer payroll withholding liability.
Account                   Debit         Credit         Comments
Payroll Withhold                        75.00        Employer FICA
Employer FICA           75.00                        June


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Accounts: Build Your Chart




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