Yes, liabilities maintain a "credit" balance, which means they will increase with a credit and decrease with a debit. For example, if you purchase land on credit, the Note Payable is a liability and is increased with the credit. The book transaction may look something like:
Land (debit) $50,000
Note Payable - Land (credit) $50,000
Copyright © 2026 eLLeNow.com All Rights Reserved.