Since revenues increase Retained Earnings, and increases in Retained Earnings are recorded on the side of the account, it follows that increases in revenues are recorded on the side of the account.

Net income refers to the income arrived at after deducting all expenses and taxes. Out of this income, a business decides how much of it should be retained or distributed as dividends.

Such income represents profit for the owners and is added to shareholder's equity. Retained profits constitute a part of reserves.

Accounting equation is expressed as follows:

Assets = Liabilities + Owners Equity

An increase in revenue or retained earnings is recorded on the right i.e credit side of the balance sheet.

Since revenues increase Retained Earnings, and increases in Retained Earnings are recorded on the __________ side of the account, it follows that increases in revenues are recorded on the __________ side of the account.

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Since revenues increase Retained Earnings, and increases in Retained Earnings are recorded on the side of the account, it follows that increases in revenues are recorded on the side of the account.