Education and Career Forum

what is the difference between credit and debit...please tell me what is the differece

Originally Posted by Unregistered

what is the difference between credit and debit...please tell me what is the differece

Difference Between Debit and Credit :
---------------------------------

In accounting, debits and credits are financial transactions and there are lots of Difference Between Debit and Credit.

>> Debit what comes in and Debit what goes Out.
>> Debit the Receiver and Credit the giver

In Other way, If you deposits money in your bank account, then it shows as credit in your account. On the other hand, debit takes place when you withdraws money or issues check to another person or party.

For Example : If you bought a car for Rs 300,000

Then you can make a entry as :

CAR A/c........................Debit (300,000)

Cash A/c.................................Credit (300,000)

Difference Between Debit and Credit :
---------------------------------

>> Real Account :

Debit What Comes In
Credit What Goes Out

>> In Nominal Accounts :

Debit All Expenses And Losses
Credit All Incomes And Revenues

>> In Personal Accounts :

Debit The Receiver
Credit The Giver

Difference Between Debit and Credit :
---------------------------------
In accounting, debits and credits are financial transactions and there are lots of Difference Between Debit and Credit.
>> Debit what comes in and Debit what goes Out.
>> Debit the Receiver and Credit the giver
In Other way, If you deposits money in your bank account, then it shows as credit in your account. On the other hand, debit takes place when you withdraws money or issues check to another person or party.
For Example : If you bought a car for Rs 300,000
Then you can make a entry as :
CAR A/c........................Debit (300,000)
Cash A/c.................................Credit (300,000)
Difference Between Debit and Credit :
---------------------------------
>> Real Account :
Debit What Comes In
Credit What Goes Out
>> In Nominal Accounts :
Debit All Expenses And Losses
Credit All Incomes And Revenues
>> In Personal Accounts :
Debit The Receiver
Credit The Giver

Credit is that which goes in a particular account
whereas Debit is that which comes out from a particular account.

Originally Posted by Unregistered

what is the difference between credit and debit...please tell me what is the differece

Debit - when you increase the value of the asset and/or networth, when you decrease a liability
DEBIT is a record of an indebtedness; specifically : an entry on the left-hand side of an account constituting an addition to an expense or asset account or a deduction from a revenue, net worth, or liability account.

Example 1: Purchase of a land for business operation:
Dr. Land (increase in asset)
Cr. Cash and/or Accounts Payable (decrease in asset)

Example 2: Purchase of building in exchange for shares of Stocks
Dr. Building (increase in asset)
Cr. Subscribed Capital Stock (increase in capital)

Example 3: Full payment of Charged Purchases of Goods
Dr. Accounts Payable (decrease in liabilities)
Cr. Cash or Cash in Bank (decrease in assets)

Credit is otherwise.
CREDIT, in accounting, is an accounting entry system that either decreases assets or increases liabilities; in general, it is an arrangement for deferred payment for goods and services.

What s the difference between Journal and Ledger ?

what is outstanding expenses and outstanding income?

there is a sum credited to a particular account of mine, what does that mean

explain the difference between debit n credit?

Explain to me please whats the debit side and the credit side in this case were Mr Bongile rendered a service
for cash to a clientt for the amount of
R60 000...

Originally Posted by poisondart

Debit - when you increase the value of the asset and/or networth, when you decrease a liability
DEBIT is a record of an indebtedness; specifically : an entry on the left-hand side of an account constituting an addition to an expense or asset account or a deduction from a revenue, net worth, or liability account.

Example 1: Purchase of a land for business operation:
Dr. Land (increase in asset)
Cr. Cash and/or Accounts Payable (decrease in asset)

Example 2: Purchase of building in exchange for shares of Stocks
Dr. Building (increase in asset)
Cr. Subscribed Capital Stock (increase in capital)

Example 3: Full payment of Charged Purchases of Goods
Dr. Accounts Payable (decrease in liabilities)
Cr. Cash or Cash in Bank (decrease in assets)

Credit is otherwise.
CREDIT, in accounting, is an accounting entry system that either decreases assets or increases liabilities; in general, it is an arrangement for deferred payment for goods and services.

Best answer!
Thank you very much!

why is it found on both sides either on debit or credit. Is it when we receive things it goes to debit and we give it goes to credti

Credit and Debit ;----
These are two words which we naturally hearing regarding bank sector


Difference between them ::---
Credit -
example :
withdrawing money from the savings account ..
Debit :
Depositing the money to the accounts..
For example ....
You bought Refrigerator
cost - 25,000
Debit - 25,000 which is deposited for refrigerator
Credit - 25,000 payment for the product
I hope you got it ...

Main differences between debit and credit are following:-
* Debit is what you pay and credit is what somebody else pays for you.
* Debit is money removed from an account and credit is deposited.
* Every transaction has a debit and an equal credit. In accounting, basically debit means left and credit means right. As we know there are three types of accounts in which debit and credit are different:
<REAL ACCOUNT
debit what comes in and credit what goes out.
<NOMINAL ACCOUNT
Debit all expenses and losses, credit all incomes and gains.
<PERSONAL ACCOUNT
debit the reciever and credit the giver