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what is the exact meaning of debit and credit
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Answer / komal
The first thing one needs to do when learning about debits and credits is to concentrate on the accounting definition for debit and credit and forget any other connections for a second. For instance, a debit is not a debt, though they both were derived from the same Latin root. Credit, as it is used for lending, comes closer to having the same meaning, but it isn't exact. To make debits and credits easier to understand, please forget these meanings and concentrate on the accounting meanings only.
Debit is an increase to an asset or expense account,
or a decrease to a liability,equity or income account.
Credit is An increase to a liability, equity, or income account,or a decrease to an assets or expense account.
| Is This Answer Correct ? | 10 Yes | 0 No |
Answer / h.r. sreepada bhagi
In Accounting Debit means Indebted by and Credit means
Indebted to. Debit & Credit are the basic rules of
accounting and it applies to every transaction having
monetary implication. The basic point one needs to remember
is, in every transaction total of debits equal to total of
credits. Source of Debit & Credit in Book keeping is
transaction voucher and the destination is the period end
Financial Statements, i.e. Profit & loss A/c (or Income &
Expenditure A/c) and Balance Sheet.
In the Profit & Loss A/c, all incomes are credits & all
expenses are debits. In the Balance Sheet, All assets are
Debit and All liabilities and Networth (Capital & Reserves)
are credits.
| Is This Answer Correct ? | 6 Yes | 9 No |
Answer / vamsi
what comes are debit
what goes are credit
all expances are debited
and all loses are debited
all incomes are credited
and all profits are credited
| Is This Answer Correct ? | 6 Yes | 9 No |
Answer / anusha
Debit and Credit are just like as + and - in mathematics
| Is This Answer Correct ? | 6 Yes | 10 No |
Answer / teja
DEBIT-receiving aspect of transaction is debit
CREDIT-giving aspect of trnsaction is credit
| Is This Answer Correct ? | 6 Yes | 10 No |
Answer / bhavani
In Accounting Debit means Indebted by and Credit means
Indebted to. Debit & Credit are the basic rules of
accounting and it applies to every transaction having
monetary implication. The basic point one needs to remember
is, in every transaction total of debits equal to total of
credits. Source of Debit & Credit in Book keeping is
transaction voucher and the destination is the period end
Financial Statements, i.e. Profit & loss A/c (or Income &
Expenditure A/c) and Balance Sheet.
In the Profit & Loss A/c, all incomes are credits & all
expenses are debits. In the Balance Sheet, All assets are
Debit and All liabilities and Networth (Capital & Reserves)
are credits
| Is This Answer Correct ? | 2 Yes | 7 No |
Answer / farhan
Debit what ever comes in and all those things that goes out is credited in accounting terms
| Is This Answer Correct ? | 4 Yes | 11 No |
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