The Flow of Credits and Debits in Double-Entry Bookkeeping

Part of the Bookkeeping 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. To keep your debits and credits straight follow this table which shows you how both impact on your various business accounts. Put a copy of this up by your desk to check back to for quick reference:

Account Type Debits Credits
Assets Increase Decrease
Liabilities Decrease Increase
Income Decrease Increase
Expenses Increase Decrease
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Bookkeeping For Dummies Cheat Sheet (UK Edition)

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