What is debit and what is credit ?
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Answer / neha
Debit & Credit depends upon the criteria of principal
Debit is what comes in, all expenses & losses & the last
debit the receiver.
Credit is what goes out, all incomes & gains & the giver
| Is This Answer Correct ? | 13 Yes | 2 No |
Debit & Credit depends upon criteria of principal
1- debit is the receiver & credit is the giver
example. syham goods sold to ram ,
ram is a receiver dr
shyam is a giver cr
2- what come in debit & what goes out credit.
example. goods purchase for cash
purchase of goods (debit)come in
cash ( credit)goes out
3- all expenses & losses are debit & all income &gain are
credit.
| Is This Answer Correct ? | 5 Yes | 2 No |
Answer / deepak
Debit and credit are two fundamental elements of accounting
which represents both sides of each business transaction in
an organization
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / binu abraham
in fact there is a simple way.
debit is the one who recives,
and credit is the one who gives.
| Is This Answer Correct ? | 2 Yes | 6 No |
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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
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