Definition: Definition 1: Credit is the opposite of debit. In this case, credit refers to a bookkeeping entry that is an increase in liabilities or net worth or a decrease in assets on the company's balance sheet. In double-entry bookkeeping, a credit to one account is a debit to another. On a T-account ledger, credits are abbreviated Cr and are listed on the left-hand side of the ledger.
Examples:
A credit was made to the liabilities account of Company B when Company A paid off a debt to them.
