Debetpuoli
Debetpuoli is the Finnish term for the debit side in double-entry bookkeeping. It refers to the left side of a T-account and is used to record transactions where value is added to assets or expenses, or subtracted from liabilities, equity, and revenue. The concept is foundational to balancing every financial transaction.
In double-entry accounting, every entry has two equal and opposite sides: a debit (debetpuoli) and a credit.
Normal balances differ by account type. Asset and expense accounts typically carry a debit balance, meaning
- Purchasing equipment with cash: Debit Equipment (increase asset) and Credit Cash (decrease asset).
- Earning revenue on credit: Debit Accounts Receivable (increase asset) and Credit Revenue (increase equity via retained
- Paying a liability: Debit Accounts Payable (decrease liability) and Credit Cash (decrease asset).
- Recording an expense incurred but not yet paid: Debit Expense (increase) and Credit Accounts Payable (increase
In Finnish accounting usage, debetpuoli is often discussed alongside kreditpuoli (credit side). The concept is universal