Accounting
Credit
Definition
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What is Credit?
Credit is an accounting entry that increases liability, revenue, or equity accounts and decreases asset or expense accounts. In double-entry bookkeeping, every transaction has at least one debit and one credit entry, ensuring the accounting equation remains balanced. The term comes from Latin 'credere' meaning 'to believe'. In Tally, credits are recorded on the right side and shown with 'Cr' notation in ledger accounts and vouchers.
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