### Debit and Credit accounts

Every account is classified as either a debit account or a credit account based on the General Ledger category of the account. Whether an account is a debit account or a credit account determines how a credit or a debit transaction affects the balance of the account.

A debit account is a General ledger account that increases in value when an amount is debited to the account and decreases when an amount is credited to the account.

A credit account is a General ledger account that increases in value when an amount is credited to the account and decreases when an amount is debited to the account.

All accounts with a General ledger category of Asset, Expense, Cost of Sales or Other Expense are debit accounts.

All accounts with a General ledger category of Liability, Equity, Income or Other Income are credit accounts.