In Accounting, what are credit entries and also explain what does an entry on the CREDIT SIDE means. Is Credit side and Credit Balance the same?

January 19th, 2010 Comments off
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Credit Entries:

Credit entries are the entries found on the right-hand side of any ledger account.

An entry on the CREDIT side indicates:-

  • A decrease in ASSETS;
  • A decrease in EXPENSES
  • An increase in LIABILITIES
  • An increase in REVENUE or
  • An increase in CAPITAL

 

The credit side and credit balance is not the same.

Unlike credit entries, a credit balance on an account indicates the credit side of the account is greater than the debit side

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Financial Accounting

 
 

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