Debits and Credits

These are the basic and most important two terms in accounting, they can basically be defined as:
Debit:
is a value added to an account.

Credit
is a value removed from an account

Every transaction that occurs in a business can either be categorised as debit or credit.

Depending on the account that you are handling, you will be clear about classifying the transaction into debit or credit. For example: if you are handling your checking account, a transaction of depositing money into your account is classified as debit, while writing a check for someone is classified as credit.