GlossaryAccounting & Bookkeeping
Credit Entry
Also called: credit side
What is Credit Entry?
A credit entry is the right-hand side of a double-entry transaction, written as Cr. Credits increase liabilities, income and equity, and decrease assets and expenses.
Why Credit Entry matters
Credits are where income and borrowings live, so misreading them is how sales get double-counted or a loan receipt is mistaken for revenue.
How Credit Entry works in practice
A sale on credit credits the sales account and debits the customer's account, recognising income without any cash movement. The cash comes later, as a separate entry.
Worked example
A ₹20,000 credit sale credits sales income and debits accounts receivable.
Frequently asked questions
Not necessarily. Recording a sale on credit raises income with no cash movement at all.
Related terms
Debit EntryThe left side of a journal entry, recorded as Dr.Double-Entry BookkeepingRecording every transaction twice, as a debit and a matching credit.Accounts ReceivableMoney customers owe you for goods or services already delivered.Journal EntryA dated record of one transaction, with its debits and credits.