Owners Equity accounts are increased by a credit. If you look at the accounting equation you will see the logic Assets = Liabilities + Owners Equity You can't add a debit + credit. So Owners Equity Increases with a credit.
assets liability owners' equity income expense account
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
no
liabilities
owners equity
Owners Equity accounts are increased by a credit. If you look at the accounting equation you will see the logic Assets = Liabilities + Owners Equity You can't add a debit + credit. So Owners Equity Increases with a credit.
CREDIT
assets liability owners' equity income expense account
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
no
liabilities
Say if your mom was a good in my store, and I sold your mom, then that would affect the owners equity. If your mother was a good hooker and I made an investment in her vagina to make me some money, and she makes revenue off of that... That would affect the owners equity.
A shift in assets would not affect liability or equity: Receive payment of an Accounts Receiveable, Purchase a Fixed Asset with Cash, move funds from Cash to Investments (Bonds, etc.).
the liabilites and the owners equity
The account title used for owner's equity can be simply "Owner's Equity." There may be sub accounts as part of the owner's equity part of the balance sheet, such as Retained Earnings.
sales and expenses