Accounting glossary

What is credit (bookkeeping)?

One half of double entry. A credit increases liabilities, equity and income, and decreases assets and expenses. Neither debit nor credit means good or bad — they are directions, and every entry has both sides in equal measure.

Example

Ring up a $100 cash sale: cash (an asset) is debited $100, and sales (income) is credited $100. The credit increased income.

Credits are not 'good' and debits are not 'bad' — they are directions. Every entry carries both in equal amount.

In SeroBooks

Every posting in SeroBooks balances debits and credits by construction. Journal entries guide →

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