1. District And Club database
Fun Facts Featuring
Accounting Terminology
D6970 – Patti Chapman
DACdb User Group Meeting - Oct 2015

2. Two Friendly Rules Assets and Expenses increase with DEBIT entries
All other accounts, Liabilities, Equity, Income, increase with CREDIT entries

3. Balance Sheet Debits and Credits
Assets carry a normal debit balance and are located on the balance sheet. An example of an asset is a checking account.
Liabilities carry a normal credit balance and are also found on the balance sheet. An example of a liability is your Paul Harris Foundation account.
Equity carries a normal credit balance and resides on the balance sheet.
The first three items “balance” each other out.
See, isn’t this fun?

4. Income Statement Debits and Credits
Income accounts reside on the profit and loss statement and carry normal credit balances. An example of an income account is your Member Dues account.
Expenses are also on the profit and loss statement and carry normal debit balances. An example of an expense account is postage.

5. T-Accounts BALANCE SHEET ASSETS LIABILITIES EQUITY Debits Credits
Increase
Decrease
Normal Balance
INCOME STATEMENT
INCOME
EXPENSES

7. In Conclusion…..Whew! T - Account Format = + ASSETS LIABILITIES EQUITY
debit
credit
Beg. Balance
+ Increases
- Decreases
+ Decreases
- Increases
Ending Balance