A method of keeping books that requires offsetting entries. For every debit there must be an equal credit. If you deposit money in your bank account (a debit) there must be an offsetting entry. Where did the money come from? Was it from sales or a bank loan perhaps, either of which would be increased (a credit) for an equal amount to that deposited in the bank.
The 500 year-old accounting system where every transaction is recorded into at least two accounts. To learn more, see Explanation of Debits & Credits. To Top
A system of reporting transactions, based on recording increases and decreases in accounts so that debits always equal credits.