Flow of Credits and Debits in Double-Entry Bookkeeping

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 accounts:




























Account TypeDebitsCredits
AssetsIncreaseDecrease
LiabilitiesDecreaseIncrease
IncomeDecreaseIncrease
ExpensesIncreaseDecrease



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Source:http://www.dummies.com/how-to/content/flow-of-credits-and-debits-in-doubleentry-bookkee0.html

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