[baz]

Can you tell me why net income is a debit on the income statement columns & a debit in the balance sheet columns of a worksheet? The opposite is true for a net loss. I know WHERE these numbers go, but I don't know WHY. Can you explain?

[littlebear91]

This is grade 11 Financial Accounting, if you take this course BAF3M1, you'll know. Anyhow, net income is on the debit side because it is how much the company have earned. From the company point of view, it's + so it's debit. Credit because you owe money. From bank point of view, they owe money to this company so it's on their financial statement, it's credit. Debit and Credit balance out and voilà. That's the magic of money. Asset = Liability + Owner's Equity. You get this equation, you get why net income is considered debit from the company point of view. Hopes that helps, if not, you should search on internet or borrow books from library.

[breynoldsitt]

Sounds like littlebear91 is an arrogant priick