How Debits and Credits Work: Rules, Journal Entries & Examples (2026)

Accountant holding a calculator and writing financial journal entries on a clipboard at a desk with a laptop.

Every accurate financial statement begins with a single skill: recording debits and credits correctly. A debit is an entry on the left side of an account. A credit is added on the right-hand side. Make a mistake in this area, and it will be reflected in your balance sheet, income statement, and tax filings. This […]