what is Credit?




Answer Posted / h.r. sreepada bhagi

Debits & Credits in Accounting are defined as Rules of
Accounting as below :

1.Personal A/c - Debit the Receiver & Credit the Giver.
2.Real A/c - Debit what comes in & Credit what goes out
3.Nominal A/c - Debit all expenses & losses & Credit all
Incomes & Gains.

Generally Debit amounts are entered on the left column &
credit on the right column in Accounts. In some softwares,
all entries are made in one column with Dr. or Cr. Sign or -
sign for credits.

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