Nodes in the wireless Ad-hoc network act as router for forwarding of packet from source to destination. During the forwarding of the packet, energy present in the node is utilized. More energy is spent in transferring the packet than on receiving the packet in the network. Forwarding of the packets is a common activity of the nodes in wireless Ad-hoc network. Packets are dropped by link failure, less bandwidth, collision, etc. Nodes will not forward the packet to its neighbouring node as a result packet drops. This happens due to the presence of selfish nodes in the Ad-hoc network. Selfish nodes preserve their energy for their own utilization. Identification and elimination of the selfish node is done using Energy Based Credit System (EBCS). The routing protocol used is dynamic source routing. The implementation is done on the NS2 simulator. The result is verified for performance parameters like packet delivery ratio, through put, and end-to-end delay.