Definitions of Debits and Credits

Debit
*An entry in the financial books of a firm that increases an asset or an expense or an entry that decreases a liability, owner's equity (capital) or income.
*Also, an entry entered on the left side (column) of a journal or general ledger account.

Credit
*An entry in the financial books of a firm that increases a liability, owner's equity (capital) or revenue, or an entry that decreases an asset or an expense.
*Also, an entry entered on the right side (column) of a journal or general ledger account.

Simple Debit / Credit Rule:

* All Accounts that Normally Have a Debit Balance are Increased with a Debit by placing the amount in the Left Column of the account and Decreased with a Credit by placing the amount in the Right Column of the account.
# Assets
# Draws
# Expenses
* All Accounts that Normally have a Credit Balance are Increased with a Credit by placing the amount in the Right Column of the account and Decreased with a Debit by placing the amount in the Left Column of the account.
# Liabilities
# Owner's Equity ( Capital )
# Revenue