Assets: Increases in asset accounts are recorded by debits (entries on the left), while decreases are recorded by credits (entries on the right).

Liabilities and Owners' Equity: These accounts increase through credits (right-side entries) and decrease through debits (left-side entries).

This system aligns with how accounts are positioned on the balance sheet. For assets on the left side, increases are debited, and for liabilities and owners' equity on the right side, increases are credited​.