Question

What is done to reduce the balance of any liability account?​

Answer 1

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For a liability account you credit to increase it and debit to decrease it. for a capital account, you credit to increase it and debit to decrease it....♥

Answer 2

Explanation:

for a liability account you credit to increase it and debit to decrease it. for a capital account, you credit to increase it and debit to decrease it....

Liability accounts in double-entry bookkeeping

In double-entry bookkeeping, there are five types of nominal accounts:

Income accounts: what the business has earned

Expense accounts: the business's day-to-day running costs

Asset accounts: what the business owns

Liability accounts: what the business owes

Capital accounts: what is owed to or by the business owner.