Interested to Buy Any Domain ? << Click Here >> for more details...
simple meaning of debit and credit...?
- 3 Answers
- 8225 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 to set/ determine Credit limit of a customer in Manufacturing and Trading Business?
Explain what is involved in the process of double-entry accounting?
what is the D.V.T. rate from 1/10/2009
what is the enty for contract bill raised?
Dear sir/madam, Want to know entry for closing of sundry creditors account on the end of the year when its accounts shows debit balance, Payment made excess. E.g Invoice rcvd : 100000.00 from XYZ company payment Made: 105000.00 Please suggest best entry for the same
What are the functions of a General Ledger? What accounts are usually maintained in it and from what subsidiary books are they derived?
My Brother is running a small business of Window glasses & Mirror etc. He needs Bank Loan (CC/OD Limit)against current account. So, I need a project report to apply CC Limit. Please Help me. My EMAIL ID is :- savichawla_1703@yahoo.co.in Kindly send the report to above ID ASAP. Thanks & Warm Regards Sarvpreet +919888669523
what is the primary of for-profit organisation
how to show provident fun in balance sheet
4 Answers Genpact, WBCS West Bengal Civil Service,
HOW THE BACKUP TALLY DATA & HOW IT WILL B SHOW IN MY CMPUTER AGAIN.
What a deferred asset is and give an example?
What is the entry of Bank Cheque Dishoner? Recieve the cheque from SBA Enviro Pvt. Ltd. on dated 5 Jan2012 of Rs.500000/-. It will be dishonered on dated 10Jan2012.
Audit 
