If the effect of the cr portion of an adjusting entry is to increase a liability account then what will the effect of the Dr portion of the entry be?

it may have 3 possible impacts on debit side

• may increase an expense
• may increase capital expense ultimately increasing Assets
• may reduce the value of some other liabilities like Account Payable / Share Capital / Accruals etc

Sample Entry

Salary exp   500 

   Salary Payable  500

or

Plant & Machinery a/c    10000

   Director Loan a/c                10000

or 

Supplier a/c      2000

    Bank ( Limit ) a/c   2000

it may happen in a composit entry too

Regards;   Azhar

Reducing liabilities or increasing Assets/ Expenses.