Is equity a debit or credit?

Open in App

Solution

Equity is a credit as revenues earned are recorded on the credit side. These credit balances are closed at the end of every financial year and are transferred to the owner’s equity account.

Also read:

Debt to Equity Ratio

What Is Equity?

What Are Equity Shares?

Suggest Corrections

Similar questions

Are debits or credits listed first in journal entries? Are debits or credits indented?

(i) Issue of Equity Shares:	(ii) Cash received from debtors:
(iii) Redemption of debentures;	(iv) Purchased goods on Credit?

Are debits or credits listed first in journal entries? Are debits or credits indented?

Subsidiary books do not have both the debit and credit sides. They simply have either debit or credit balance. Is this statement correct?

Join BYJU'S Learning Program