It essentially represents amounts owed to the owners. Equity accounts are balance sheet accounts. Similarly, some balance sheets are presented so that assets are on the left, liabilities and owner's equity are on the right. It lists your assets, your liabilities, and the difference between the two, which is your equity, or net worth. Debits increase assets and decrease liabilities and equity.
Credits increase liabilities and equity and decrease assets.
Stands for Credit. Debits must always equal credits. Because debits equal credits, double-entry accounting prevents some common bookkeeping errors. Errors that do occur are easier to find. Double-entry accounting is the basis of a true accounting system.