Accounting debit and credit represent the two sides of a transaction: the side where money is received (debit amount) and the side where money is spent (credit amount). The purpose of an accounting debit or credit is to accurately record these transactions in the organization’s financial books. Debits increase asset or expense accounts, while credits decrease asset or expense accounts. By tracking all debits and credits within the company, managers can evaluate and monitor the business’s financial health and make informed decisions about future investments.