why do assest accounts have a normal balance which is debit and liabilites and stockholders equity have a normal balance which is credit? Solution It is because of the three golden rules set by the accounting principles:- . 1)Debit what comes in , credit what goes out. . 2)Debit the receiver, credit the giver. . 3)Debit all expenses and losses, credit all incomes and gains. . When we purchase an asset it comes in our business- so we debit asset. So assets have a debit balance. . When we receive money from shareholders or loan from third party we credit them because we know -credit the giver.So. Liability and shareholder equity have a credit balance. .