A simple ledger is a record of every single transaction a business makes. Each ledger has accounts and entries that represent these transactions. There are two sections in a simple ledger - a debit side and a credit side. For each transaction, you enter a debit and a credit entry in the ledger. In the end, the balance on both sides should be the same. Difference between credit and debit entries The debit and credit entries are made in the 3 main accounts in any business. Personal - Drawing money for research or paying the staff. The expenses that you incur while running your business. Real - Your assets like furniture, machines, etc. And your liabilities Nominal - Your income or revenue. Also any profit or loss you make in your business transaction. Making so many transactions and then recording them on the right side of a ledger can be time-consuming and challenging. Digichal is a digital khata app that is the best billing app for mobile that will save you time in creating the entries and managing your finances. Download the app and devote yourself to more critical business tasks.