Rules of Debit and Credit The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit Stockholders' equity: Common Stock Credit Retained Earnings Credit Dividends Debit Credit Income statement accounts: Revenue

Answer and Explanation:

Particulars                  Increase    decrease     normal balance

Asset                          debit           credit            debit

liability                        credit         debit             credit

common stock          credit         debit             credit

retained earnings      credit         debit             credit

dividend                      debit           credit            debit

revenue                    credit         debit             credit

expense                     debit           credit            debit