Land Credit or Debit is a complex concept within the realm of business accounting that can be defined as an entry in the ledger for the purchase, sale, or exchange of land. In essence, land credit or debit is the financial bookkeeping associated with the transfer and ownership of land from one party to another. It can also refer to the capitalization of estimated earnings due to changes in projected land values. Land Credit or Debit is not only essential for tracking asset acquisitions and investments but for accurately reporting the resulting tax liability and cash flow impacts.