The bookkeeping cheat sheet
The sheet fits on a letter page: 16 terms, the debit and credit rules for the 5 account types, and 7 formulas. Print it, or keep it open while you work.
Download the PDF
The PDF is free. You do not need an account.
LedgerBox made this sheet free because people who keep books also have PDF bank statements. LedgerBox extracts the rows from those statements.
What is on the sheet
16 Terms Each definition is one or two lines, from asset to depreciation.
5 Debit and credit rules The table shows what a debit and a credit do to each account type, and which balance is normal.
7 Formulas The list goes from the accounting equation to the current ratio. Each formula names its inputs.
The debit and credit rules
A debit is the left side of an entry. A credit is the right side. Every entry has equal debits and credits, so the books always balance.
A debit increases assets and expenses. A credit increases liabilities, equity, and revenue.
| Account type | Debit | Credit | Normal balance |
|---|---|---|---|
| Assets | Increases | Decreases | Debit |
| Expenses | Increases | Decreases | Debit |
| Liabilities | Decreases | Increases | Credit |
| Equity | Decreases | Increases | Credit |
| Revenue | Decreases | Increases | Credit |
The terms
These are 8 of the 16 terms. The PDF has all 16.
- Asset
- Anything the business owns that has value. Examples are cash, equipment, inventory, and unpaid customer invoices.
- Liability
- Anything the business owes. Examples are loans, unpaid bills, and unpaid payroll.
- General ledger
- The master record of every transaction, sorted by account. All reports come from it.
- Journal entry
- A recorded transaction with at least one debit and one credit. The two sides are equal.
- Reconciliation
- A check of the books against the bank statement, row by row. It finds errors and missing entries.
- Trial balance
- A list of every account balance. If the debit total equals the credit total, the books are correct.
- Accrual basis
- Record revenue when you earn it and expenses when you incur them, even if no money moved.
- Cash basis
- Record revenue and expenses when the money moves. Most small businesses start on the cash basis.
The sheet defines the terms. LedgerBox reads the statements.
Upload a PDF bank statement. Export the rows to Excel, CSV, or QuickBooks. You do not need a card.