Credit Definition (Bookkeeping)

In double-entry bookkeeping, a credit is an entry made on the right side of an account. It increases certain accounts and decreases others.

Credit Extended Definition (Bookkeeping)
Credits increase liability, equity, and revenue accounts. Credits also decrease asset and expense accounts.

Credits are the opposite of debits. You record debits on the left side of an account and record credits on the right side. Credits and debits help you balance your accounting books.

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Debits and Credits 101: Definitions & Example

Last Updated By

Rachel Blakely-Gray | Apr 17, 2023