Debits and Credits Cheat Sheet: A Handy Beginner’s Guide One entry recorded as a debit in one account means a credit to another account. In other words, for every debit, there is an equal and opposite credit. This is where we get the term “balancing your books”. Equity accounts like retained earnings and common stock also have a credit balances. This means that equity accounts are increased by credits and decreased by debits. Tools such…