Financial Glossary
Credited to Your Account
When a bank says an amount was credited to your account, it means money was added and your balance went up. In double-entry bookkeeping, a credit is the opposite side of a debit: it increases liability, equity, and revenue accounts while decreasing asset and expense accounts. As with debits, the everyday banking meaning and the accounting meaning can feel reversed, because the bank is recording the transaction from its own perspective.
Problem & Application
A deposit that the bank credits to your account increases your cash, but in your own ledger that cash increase is recorded as a debit, while the offsetting credit goes to revenue or another account. Misreading which side is which leads to deposits being booked to the wrong accounts and inflated or understated income. For businesses processing customer payments and refunds daily, this clarity keeps revenue figures trustworthy.
In Short
Credited to your account signals a balance increase from the bank's view, but proper bookkeeping records the matching entries from your own. Understanding both sides prevents misstated revenue and cash.