Fundamentals of Debit and Credit

Front

Debit

Back

An entry recording an amount owed, typically on the left-hand side of an account.

Front

Credit

Back

An entry recording a sum received, typically on the right-hand side of an account.

Front

Debit recorded side

Back

The left-hand side.

Front

Credit recorded side

Back

The right-hand side.

Front

Debit increases

Back

Assets and expenses.

Front

Credit increases

Back

Liabilities, equity, and revenue.

Front

Effect of debit on liabilities

Back

It decreases liabilities.

Front

Effect of credit on assets

Back

It decreases assets.

Front

Primary rule of double-entry bookkeeping

Back

Every debit must have a corresponding credit.

Front

Increase in revenue

Back

An increase in revenue is recorded as a credit.