On the credit side

usgb
phrase

In accounting, it refers to the side of a ledger where increases in assets, decreases in liabilities, and owners' equity are recorded.

If revenues are higher than expenses, a net income will appear on the credit side of the income statement.
Visual representation of "on the credit side" - In accounting, it refers to the side of a ledger where increases in assets, decreases in liabilities, and owners' equity are recorded

Often appears as...

  • appear on the credit side
  • entries on the credit side

Usage tips

Technical

Technical

Definition 1 of 2
Visual representation of "on the credit side"
LampPro Tip 1/3

Ledger Understanding

Understand that the ledger has two sides: debit and credit. 'On the credit side' is used in financial contexts.

Illustration for Ledger Understanding
Record the revenue on the credit side, since it's an increase in assets.
LampPro Tip 2/3

Accounting Jargon

'On the credit side' in accounting is professional jargon, mainly used in financial industries.

Illustration for Accounting Jargon
After the transaction, the increase in capital was listed on the credit side.
LampPro Tip 3/3

Balance Implications

'On the credit side' suggests a positive financial state, like profits or asset gains.

Illustration for Balance Implications
The company's loan repayment decreased liabilities and is reflected on the credit side.
Visual representation of the word "On the credit side"

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