Debetsidan

Debetsidan refers to the left-hand side of a T-account or general ledger in double-entry bookkeeping, where debit entries are recorded. In a double-entry system, every financial transaction affects at least two accounts with equal debits and credits, ensuring that the accounting equation remains in balance.

In practice, what goes on the debetsidan depends on the type of account. Debits generally increase asset and expense accounts and decrease liability, equity, and revenue accounts. Credits have the opposite effect: they increase liability, equity, and revenue accounts and decrease asset and expense accounts. The two sides must always balance, with the total debits equaling the total credits for each journal entry.

Common examples help illustrate the rule. Purchasing equipment for cash would involve a debit to the Equipment (an asset) and a credit to Cash (another asset) for the same amount. Borrowing from a bank would debit Cash (asset) and credit a Liability account such as Loans payable. Revenue recognition typically involves a credit to Revenue and a corresponding debit to Cash or Accounts receivable. Paying an expense recorded earlier would involve a debit to the relevant Expense account and a credit to Cash or another liability.

Historically and in modern practice, debetsidan is a fundamental component of the ledger and journal entries. In contemporary accounting software, debits and credits are still the two sides of each transaction, displayed as left and right columns or fields, respectively.