The modern rule is simply this: assets and expenses increase with a debit, while liabilities, income, and equity—like capital—increase with a credit. So an increase in capital is a credit because it represents an obligation the business has to the owner. I see it like my own side project’s ledger: when I put my savings in, it’s a credit to the capital account, a promise the business owes back to me. Staring at the software, this logic finally clicked, more reliable than any machine assembly line.
#startups#business
Jump in to reply — no account needed.