Debits & Credits

The second equation that comes into play when talking about accounting is:

Debits (DR) = Credits (CR)

FRS is a double entry accounting system, meaning that for every debit transaction there is an offsetting credit transaction.

To better understand the monthly FRS reports, you will need to know what the normal balance is or how a part of the accounting equation is increased. Knowing the normal balances will also help you to identify possible problems in your accounts.

NOTE: Debit transactions and debit balances are normally shown without a symbol and credit balances are shown with a "-" symbol. "-" does not mean negative, it means credit. For example, Cash with a debit balance of $1,000, would be shown as $1,000. Cash with a credit balance of $1,000 would be shown as $1,000-.