Increase An Asset Debit Or Credit

Increase An Asset Debit Or Credit

Increase An Asset Debit Or Credit

oboloo’s Glossary

Increase in an asset is an entry recorded on the balance sheet of a business when the value of that asset increases. When the value of an asset increases, a debit is made to the Asset account and a credit is made to another account for the corresponding increase in value. For example, if a company purchases new equipment, it would record a debit to the Equipment account and a corresponding credit to the Cash account for the amount paid for the purchase. An increase in an asset is a debiting event as it increases the assets held by the business.