Debits on the Left, Credits on the Right is an accounting principal that provides a helpful structure for accurately creating financial records. In this system, debits- money received or removed from an account – are recorded on the left column of an account ledger while credits – money paid or added to an account – are recorded on the right side. This system requires accountants to identify every transaction as either a debit or a credit and make sure entries are placed in the correct column of a ledger. By following this standard accounting practice, organizations can quickly spot any errors or discrepancies in their financial records!