Debit and credit
This query is : Resolved
18 July 2012
can any one help me to understand what is debit and credit
18 July 2012
As accounting is done on Double entry system.
so every transaction have two impact.
Suppose you give me Rs. 1000/ on Loan
Than you are the giver and I am the receiver of the money.
But as I this is a loan hence liability on Me. In my books following entry will be done
Bank A/c Dr. 1000
To You 1000
Asset - Bank (Debit)
Liability - Party Account (Credit)
Hence Debit and credit are part of double entry system.
so every transaction have two impact.
Suppose you give me Rs. 1000/ on Loan
Than you are the giver and I am the receiver of the money.
But as I this is a loan hence liability on Me. In my books following entry will be done
Bank A/c Dr. 1000
To You 1000
Asset - Bank (Debit)
Liability - Party Account (Credit)
Hence Debit and credit are part of double entry system.
19 July 2012
you can read golden rules of accounting. then you can under stood easily
19 July 2012
Dear
It is very simple
Debit:Expenses, Losses
Credit Means: All incomes and Gains
E.g. If i pay a salary of Rs.10,000 to Mr X then the entry will be in my books of accounts
Salary a/c dr (Expenses)
Mr X
Regards
A Venkattaraman
It is very simple
Debit:Expenses, Losses
Credit Means: All incomes and Gains
E.g. If i pay a salary of Rs.10,000 to Mr X then the entry will be in my books of accounts
Salary a/c dr (Expenses)
Mr X
Regards
A Venkattaraman
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