DEBIT AND CREDIT
An account has a left side and a right side. In accounting, the left side represents debit and the right side represents credit. When we register a transaction in an account, we debit or credit the account, that is, we register a debit (in the account on the left) or we register a credit (in the account on the right).
Total Accounts Receivable must equal Total Accounts Payable. The trial balance is a tool that helps us ensure that the total debits equal the total credits.
Example of a transaction
