In accrual accounting, what is a "left side" entry known as?

In accrual accounting, a "left side" entry is known as a debit. This terminology is fundamental to the double-entry accounting system, where every transaction is recorded in at least two accounts, and each account has two sides: debits and credits.

When an entry is made on the left side (debit), it typically indicates an increase in assets or expenses, or a decrease in liabilities or equity. For instance, if a business purchases machinery, the asset account for machinery would be debited, reflecting an increase in the assets of the company.

It's important to note how this distinguishes itself from other options. For example, credits are recorded on the right side of the accounting ledger and are used to decrease assets or expenses or increase liabilities or equity. Assets and liabilities are types of accounts, while debit and credit describe the action taken on the accounts. Understanding these basic principles of accounting is essential for accurately maintaining financial records.