What is the deferent between Debit and credit
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What is the deferent between Debit and credit
In Bahrain
Ones POSITIVE the other is NEGATIVE.
In accounting a Debit means that a transaction is on the left side of a T-account, while a Credit is a trasaction that is on the right side of the T-account.
For an example a customer owes me money and I receive money from that customer.
The journal entry will be:
Debit Cash for the amount
Credit Account Payable for the amount.
Another example is I receive money from the sale of something, then my journal entry will be:
Debit Cash for the amount received
Credit Sales Revenue for the amount.
A debit to an asset increases the account, while a debit to a liability decreases the account.
A credit to an asset decreases the account, while a credit to a liability increases the account.
A credit to a Revenue incresaes the account, while a Debit increases an Expense account.
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