What are entries made on the left side of the ledger called?

The entries made on the left side of the ledger are referred to as debits. In accounting, the ledger is used to record financial transactions, and it consists of two sides – the left side for debits and the right side for credits. Debits represent an increase in assets or expenses and a decrease in liabilities or equity. For example, when a business purchases an asset, that transaction is recorded as a debit on the left side of the ledger.

Understanding this concept is crucial in accounting as it helps to maintain the balance of the double-entry bookkeeping system, where every debit must be matched by a corresponding credit. This foundational knowledge is necessary for managing financial statements, tracking income and expenses, and ensuring accurate financial reporting.