<Li> Personal accounts relate to individuals, companies, creditors, banks etc . </Li> <Li> Nominal accounts relate to expenses, losses, incomes or gains . </Li> <P> Whether a debit increases or decreases an account depends on what kind of account it is . For instance, an increase in an asset account is a debit . An increase in a liability or an equity account is a credit . </P> <Table> <Tr> <Th> Kind of account </Th> <Th> Debit </Th> <Th> Credit </Th> </Tr> <Tr> <Td> Asset </Td> <Td> Increase </Td> <Td> Decrease </Td> </Tr> <Tr> <Td> Liability </Td> <Td> Decrease </Td> <Td> Increase </Td> </Tr> <Tr> <Td> Income / Revenue </Td> <Td> Decrease </Td> <Td> Increase </Td> </Tr> <Tr> <Td> Expense / Cost / Dividend </Td> <Td> Increase </Td> <Td> Decrease </Td> </Tr> <Tr> <Td> Equity / Capital </Td> <Td> Decrease </Td> <Td> Increase </Td> </Tr> </Table>

Does a debit or credit increase an asset account