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The rules of debit and credit may be summarized as follows: Multiple Choice Accounts on the left side of the balance sheet are increased by credits, whereas accounts on the right side of the balance sheet are increased by debits. The balance of a ledger account is increased by debit entries and is decreased by credit entries. The balance of a ledger account is increased by credit entries and is decreased by debit entries. Asset accounts are increased by debits, whereas, liabilities and owners' equity are increased by credits