Accounting setup · Guide 49 of 624

Debit and credit explained

RockifyERP uses double-entry bookkeeping: every entry has equal debits and credits. Here is a plain-language guide.

What you need to know

  • Assets (cash, bank, stock, money owed to you) go up with a debit and down with a credit.
  • Expenses go up with a debit.
  • Liabilities (money you owe), equity and income go up with a credit.
  • In a journal entry in RockifyERP, total debits must equal total credits before you can submit.

Tip: Paying an expense from M-Pesa: debit the expense account, credit the M-Pesa account.

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