Debit and credit examples These terms are used to record transactions in a company’s This guide will break down what is debit and credit, explain how they apply to different account types, and provide debit and credit examples to help you understand them. Let’s look at an example using the above equations. In double-entry accounting, debits (dr) record all of the money flowing into an account. , is an entry that is recorded on the left side of the accounting To understand whether to make the entry under the debit column or credit column we first need to understand the different types of accounts and then learn the treatment in Debit and credit are fundamental concepts in finance that form the basis of the double-entry accounting system. So, if your business were to take out a $5,000 small business loan, the cash you receive from that loan . So, if your business were to take out a $5,000 small business loan, the cash you receive from that loan Basic Accounting Debits and Credits Examples. Basic Accounting Debits and Credits Examples. Debits and Credits Example: Getting a Loan Sal takes out a loan of $3,000 for some upgrades to his shop. Your goal with credits and debits is to keep your various accounts in balance. (Remember, a debit increases an asset account, or what you own, while a credit Debits and credits actually refer to the side of the ledger that journal entries are posted to. A debit, sometimes abbreviated as Dr.