Credit Entries

Credit Entries (Definition)

Credit entries are accounting entries that increase liabilities, income, and equity, or decrease assets and expenses.

Key aspects of credit entries include:

1. Recorded on the right side of a T-account
2. Always balanced by a corresponding debit entry
3. Increase liability, revenue, and equity accounts
4. Decrease asset and expense accounts
5. Essential for maintaining the balance in double-entry bookkeeping
6. Used to record various transactions such as sales, loan receipts, and asset depreciation
7. Understanding credit entries is crucial for accurate financial reporting

Proper use and understanding of credit entries are fundamental to maintaining accurate and balanced financial records.