Definition of Credit in Accounting | Credits in Bookkeeping

Accounting Definitions

Browse terms alphabetically

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Credit Definition (Bookkeeping)

Term Definition
In double-entry bookkeeping, a credit shows an account losing value.

Extended Definition
Credits increase liability, equity, and revenue accounts. Credits also decrease asset and expense accounts. You record credits on the right side of an account. Credits are the opposite of debits. Credits and debits help you balance your accounting books.

Related Article
Accounting Basics: Debits and Credits

Get Started
Try it free

Sign up today for a free, no-obligation 30-day trial.

Try It Free for 30 Days
Get Started
Take a demo

Kick the tires with a free self-guided demo.

Take a Self-Guided Demo