Once you make the decision what kind of shooting range you want, consider whether you are the kind of person who can operate under strict federal, state and local regulations, including safety, insurance, record keeping and reporting requirements.
(A debit entry in an expense account ultimately causes the credit balance in an owner's equity capital account to decrease.) If the company incurs the $500 repair expense but does not pay cash, the company will need to increase its liabilities. The increase to a liability account is achieved with a $500 credit.
So to increase an asset we debit it. To decrease it we credit it. Increases in liability, equity and revenue accounts are reflected on the right side of the âTâ, while decreases are reflected on the left side.So to increase a liability we credit it, to decrease a liability we debit it.Debitâ simply means the left side of the âTâ account, and âcreditâ refers to the right side of the âTâ account. But remember: âDebitâ does not always refer to an increase in an account balance nor does âcreditâ always refer to a decrease, or vice versa.