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Flow of Credits and Debits in Double-Entry Bookkeeping

Part of Bookkeeping Workbook For Dummies Cheat Sheet (UK Edition)

In double-entry bookkeeping, you enter all transactions in the books twice: once as a debit and once as a credit. This chart shows you how debits and credits affect your various business accounts:

Account Type Debits Credits
Assets Increase Decrease
Liabilities Decrease Increase
Income Decrease Increase
Expenses Increase Decrease