0Debits and Credits
After you have identified the two or more accounts involved in a business transaction, you must debit at least one account and credit at least one account.
To debit an account means to enter an amount on the left side of the account. To credit an account means to enter an amount on the right side of an account.
Generally, these types of accounts are increased with a debit: Dividends (Draws) ,Expenses,Assets,Losses.
You might think of D - E - A - L when recalling the accounts that are increased with a debit.
Generally, these types of accounts are increased with a credit: Gains, Income, Revenues, Liabilities , Stockholders' (Owners) Equity.
You might think of G - I - R - L - S when recalling the accounts that are increased with a credit.
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To decrease an account you do the opposite of what was done to increase the account. For example, an asset account is increased with a debit. Therefore it is decreased with a credit.
The abbreviation for debit is dr. and the abbreviation for credit is cr.
