Debit and credit
The two sides of every entry. Debits increase assets and expenses; credits increase liabilities, equity, and revenue. Neither means good or bad.
In Solo Superstars
You see the words on the Journal entries, General ledger and Trial balance pages, as two columns. Everywhere else the app talks in plain terms: money in, money out, what you owe, what you are owed.
If you remember one rule: a debit to a bank account means money came in; a credit means money went out. That is the opposite of how your bank statement reads, because the bank is describing its own books, not yours.
Example
Paying a $120 phone bill from checking: debit 6310 Telephone 120 (expense goes up), credit 1010 Checking 120 (asset goes down).
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- Dr / Cr
- debits and credits
Related
- Double-entry bookkeeping — The system where every transaction touches at least two accounts, one debited and one credited, so the books check themselves.
- Journal entry — The record of one event in your books, written as balanced debit and credit lines. Every invoice, bill, payment, and refund creates one behind the scenes.
- Account class — The five fundamental kinds of account: asset, liability, equity, revenue, and expense. Every ledger account is one of them.
- General ledger — Every journal line, grouped by account, in date order. The full history behind any number on a report.