Debit And Credit In Bank Statement

Debits and credits are the two fundamental accounting principles used to record financial transactions. In a bank statement, debits refer to withdrawals of money from an account, while credits refer to payments into an account.

In accounting terms, a debit is an entry on the left side of a journal or ledger that increases the balance of an asset or expense account and decreases the balance of a liability or equity account. A credit, meanwhile, is an entry on the right side of a journal or ledger that decreases the balance of an expense or asset account and increases the balance of a liability or equity account.

In order to maintain accurate bookkeeping records, it’s essential to make sure all your debits and credits are properly recorded in your bank statements. This ensures that you have an accurate record of all your financial transactions, so that you can easily prepare reports for tax time each year.