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-   -   What is the deferent between Debit and credit (https://www.askmehelpdesk.com/showthread.php?t=510933)

  • Sep 26, 2010, 03:18 AM
    Sabt1
    What is the deferent between Debit and credit
    What is the deferent between Debit and credit
  • Sep 26, 2010, 03:19 AM
    Sabt1

    In Bahrain
  • Sep 26, 2010, 03:49 AM
    Curlyben
    Ones POSITIVE the other is NEGATIVE.
  • Sep 26, 2010, 10:37 AM
    pready

    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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