In T-accounts, where would an increase in equipment be recorded?

In T-accounts, an increase in equipment, which is classified as an asset, is recorded as a debit to the assets account. This is because, in accounting, assets are increased through debit entries. When equipment is purchased or otherwise acquired, its value is added to the assets of the business, reflecting a growth in what the company owns.

The structure of double-entry accounting dictates that increases in assets are recorded as debits, while decreases would be recorded as credits. Therefore, when you account for an increase in equipment, it directly affects your asset side by adding to the value of the business’s resources. This fundamental principle of accounting ensures that assets are appropriately tracked and managed within the financial records, maintaining the integrity of the balance sheet.