How to identify the accounts that affect the owner's equity and how, whether they go to the credit or debit side?

To identify the accounts that affect the owner's equity, you need to look at the types of transactions that impact the equity of the business. Owner's equity is affected by revenues, expenses, investments, and withdrawals.

1. Revenues: Revenues increase owner's equity and are recorded on the credit side of the accounting equation. Examples of revenue accounts include sales revenue, service revenue, and interest income.

2. Expenses: Expenses decrease owner's equity and are recorded on the debit side of the accounting equation. Examples of expense accounts include salaries expense, rent expense, and utilities expense.

3. Investments: When the owner invests additional funds into the business, it increases owner's equity and is recorded on the credit side of the accounting equation.

4. Withdrawals: When the owner takes money out of the business for personal use, it decreases owner's equity and is recorded on the debit side of the accounting equation.

By understanding how these types of transactions impact owner's equity, you can identify the accounts that affect it and determine whether they should be recorded on the credit or debit side of the accounting equation.