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Glossary

Debits and credits

The two sides of every accounting entry; they must always balance.

The two sides of every accounting entry. A debit increases assets and expenses; a credit increases liabilities, equity, and revenue. Every transaction records equal debits and credits, which is what keeps the books internally consistent.

In Bizdivers: journal entries show a live Balanced badge, and an unbalanced entry can't post at all. See The bookkeeper's toolkit.