Debits and credits

Debits and credits are used in double entry-bookkeeping to know what money is going in or going out to your business.
An account is debited when the money is going in to your business. This means that increase in assets and expenses are recorded as debits.
Meanwhile, an account is credited when the money is going out from your business. This means that increase in liabilities, capital, and revenues are recorded as credits.
If assets and expense decreases, they are recorded as credits.
If liabilities, capital, and revenues decreases they are recorded as debits.
The chart also explains the following below: