Interested to Buy Any Domain ? << Click Here >> for more details...
simple meaning of debit and credit...?
- 3 Answers
- 8436 Views
- PWC, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / naveen
credit and debit have only one meaning in Accounting.
Debit means the left side of an account, Credit means the
right side of an account.
The way accounts increase or decrease depend on the
account's normal balance. Cash has a normal debit balance,
meaning it increases on the left side of an account. So if
you get 500 hundred dollars cash you debit the account 500
dollars. Likewise if you lose 500 dollars cash you would
credit it 500 dollars (decrease).
Accounts with a credit balance like liabilities such as
Accounts Payable increase when you credit them, and decrease
when you debit them. When you take a loan out for 100,000
dollars, your Accounts Payable is credited 100,000 because
your increasing the right side of the account. Likewise when
you start paying it off, You debit what you are paying
because you are decreasing the amount you know.
Hopefully from these examples you understand that debit and
credit are not reversable, they always mean left and right.
Whether or not an account increases or decreases depends on
an accounts normal balance (credit balance or debit
balance). I think therein lies the confusion.
| Is This Answer Correct ? | 10 Yes | 3 No |
Answer / babhu kanchupalli
Debit: Receiving aspect in a transaction.
Credit : Giving aspect in a transaction.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / c.s.joshi
entries which are encrees the assets and descrees the
lilability are debit
entries which are descrees the lilability and descrees the
assets are credit
| Is This Answer Correct ? | 0 Yes | 1 No |
How is going concern assumption and accounting period convention related?
I Want to Submit My Income tax return by efilling Personally,Can it possible. if yes please send me your help to submit the same.I Can calculate my computation of income.
Credit Limit enhanced the Bank 10Cr to 15 Cr How to post the entry in accounting books
what is basic general accounting.
2 Answers Helios Pharmaceuticals,
What is a Pay Group
journal entry for goods withdrawn for personal use
Which forms in use in service Tax, Excise duty and Vat for the return.
0 Answers ME, Signac International,
Did you use accounting applications at your previous companies or prefer working manually??
how to pass journal entries for recivables & payables if they are paid next asses year
we are a trading company providing devices and some times after sales service. when any defect came we just replace the hardware from another defective device and getting the payment from the customer. how can we account that? is there any tax implications for this?
How use Budget in SAP, i want to see the report of variant between budget and actuals.
Month end closing entries with example
Audit 
