Accounting for Debits and Credits in Double-Entry Bookkeeping

Part of Bookkeeping for Canadians For Dummies Cheat Sheet

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 bookkeeping accounts.

Account Type Debits Credits
Assets Increase Decrease
Liabilities Decrease Increase
Equity Decrease Increase
Drawings Increase Decrease
Revenue Decrease Increase
Expenses Increase Decrease