When accounts receivable is debited what is credited?

The client is buying on account or paying later, which makes it an Accounts Receivable, which is an asset. When an asset increases, it is a Debit. A sale is considered Revenue or Income, which is shown as REVENUE on the chart. When revenue increases, it is a credit.

Keeping this in view, why does an asset increase with a debit?

The accounting equation, assets equals liabilities plus equity, is the base of the double-entry bookkeeping system. Assets and expenses both have debit balances because of each of their positions in the accounting equation. Assets are a permanent account and expenses are a temporary sub-account of equity.

Why are expenses increased with a debit?

Balances on the right side of an account are credit balances. Since expenses cause a decrease to the owner's equity credit balance, a debit entry is required. However, at the time that the expense is recorded, the amount is entered as a debit in an expense account.

What is an example of an account that has a normal debit balance?

Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry. Liabilities, revenues and sales, gains, and owner equity and stockholders' equity accounts normally have credit balances.