GnuCash
Double entry Accounting basics
| Account type | Debit | Credit |
|---|---|---|
| Asset | + | - |
| Liability | - | + |
| Income/Revenue | - | + |
| Expense | + | - |
| Equity/Capital | - | + |
In double-entry accounting the source account for the transation is credited (that is, an entry is made on the right side of the account's ledger) and the destination account is debited (that is, an entry is made on the left side). The difference between the total debits and total credits in a single account is the account's balance. If debits exceed credits, the account has a debit balance; if credits exceed debits, the account has a credit balance. For the company as a whole, the totals of debit balances and credit balances must be equal as shown in the trial balance report, otherwise an error has occurred.
Accountants use the trial balance to prepare financial statements (such as the balance sheet and income statement) which communicate information about the company's financial activities in a generally accepted standardized format.