What is the term used to describe the side of an account where an increase is recorded?

The term used to describe the side of an account where an increase is recorded is "normal balance." Each type of account in the accounting system has a normal balance, which indicates whether increases are recorded on the debit side or the credit side.

For instance, asset accounts and expense accounts typically have a normal balance on the debit side, which means that increases in these accounts are recorded as debits. On the other hand, liability accounts, equity accounts, and revenue accounts have a normal balance on the credit side, indicating that increases are recorded as credits. Understanding normal balances is fundamental for accurately recording transactions in accordance with the rules of double-entry accounting.

This concept highlights the distinction in the ways different types of accounts behave in accounting, making it crucial for bookkeepers and accountants to know which side to use for recording increases in their respective accounts.