For a general ledger to be balanced, credits and debits must be equal. Debits increase asset, expense, and dividend accounts, while credits decrease them. Credits increase liability, revenue, and equity accounts, while debits decrease them.

Do debits have to equal credits in a journal entry?

credit. Debits and credits are equal but opposite entries in your books. If a debit increases an account, you will decrease the opposite account with a credit. A debit is an entry made on the left side of an account.

Do debits and credits have to equal on balance sheet?

Debits and credits will always balance, or equal each other; this ensures that the company's balance sheet and income statement are always in balance as well, accurately reflecting the income, expenses, assets, liabilities, and equity in the business for each period of time.