Because equity is an income - therefore it is a credit, not a debit.
Credit because it is an equity account
Credit side of balance sheet.....Revenue is an Owners Equity account therefore has a Credit Balance.
Drawings account is a contra account because it reduces the owner's equity account's normal balance, a credit balance.
Because they are both income. Capital and equity are sums of money deposited into an account. They are not withdrawals.
Revenue is an Owners Equity account therefore has a Credit Balance:
Yes. Owner's Equity is a credit and typically displays on the right side of a balance sheet.
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
There are two main differences that stand out between a Debit Account and a Credit Account, those are;A Debit Account always maintains a Debit Balance, meaning the account increases with a Debit to that account and decreases with a Credit to that account. These are generally Asset Accounts.A Credit Account is just the opposite, A Credit Account maintains a Credit Balance, meaning that the account increases with a Credit and decreases with a Debit, these accounts are usually used for Liabilities and Owners Equity (Stockholders Equity).
The Liablilities, the revenue, the accumulated depreciation, the Owner's equity.
Capital is a Credit Balance account. To increase capital and therefore increase OE, you will Credit the account. Not DEBIT. You Debit Cash, Credit Capital.
A dormant account is some sort of account or credit line that is open, but inactive. For instance, I have an equity line of credit with a zero balance. It is dormant.
A dormant account is some sort of account or credit line that is open, but inactive. For instance, I have an equity line of credit with a zero balance. It is dormant.