GUIDE深度 · Deep dive
Debit and Credit Basics
Accounting equation: assets = liabilities + equity. Assets/expenses increase with debits and decrease with credits; liabilities/revenue/equity increase with credits and decrease with debits. Every entry must balance.
Directions
Assets up: debit; down: credit.
Expenses up: debit; down: credit.
Liabilities/revenue/equity up: credit; down: debit.
Balance
Total debits = total credits.
First identify which accounts the transaction affects.
FAQ
Do debit/credit mean borrow/lend?
No; they are bookkeeping directions, not loans.
Which side for a cash decrease?
Credit.