For P&L items Debit is what has gone and Credit is what is come. and for B/S items majorly Debits are our assets and Credits are our liabilities.
debit
Debit is seen as Dr in accounting. Credit is Cr. They stand for Debit Record and Credit Record.
A debit is money paid out or a loss, a credit in income or a gain.
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
In accounting Dr stands for Debit Cr stands for credit the terms literally mean Debit (left side of the accounting equation) Credit (right side of the accounting equation)
debit
Debit is seen as Dr in accounting. Credit is Cr. They stand for Debit Record and Credit Record.
credit
The accounting rules are called the 'golden rules of accounting' ie debit what comes in and credit wht goes out debit the receiver and credit the giver debit all expenses and loss and credit all incomes and gains.
A debit is money paid out or a loss, a credit in income or a gain.
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
In accounting Dr stands for Debit Cr stands for credit the terms literally mean Debit (left side of the accounting equation) Credit (right side of the accounting equation)
Accounting equation: Owner's Equity=Total Equity + Revenue - Expense - Equity of creditors Rules of Debit and Credit: Personal account: Debit the receiver. Credit the giver. Real account: Debit what comes in. Credit what goes out. Nominal account: Debit all expenses and loses. Credit all income and gains.
Luca Pacoli - Father of Modern Accounting
Credit and debit are terms used in accounting and bookkeeping. Debit is typically listed first on the left side and credit will be on the right side. The words have opposite meanings. Debit is receiving and credit is giving and in business accounts debit is what comes in and credit is what goes out.
A debit is an entry showing money you have payed out. A credit is an entry showing money you have received.
Most of the people do not know the rules of Debit and Credit. That is the main problem in accounting.