credits verses debitsSolutionCredits vs Debits Accounting e

credits verses debits

Solution

Credits vs Debits

-- Accounting entry: A debit is an accounting entry that either decreases a liability or equity account; or increases an asset or expense account. A credit is an accounting entry that either decreases an asset or expense account; or increases a liability or equity account

-- Value for a transaction: Debit is the use of value for a transaction; and credit is source of value of a transaction

-- In Journal: Debit is first account that is recorded. Conversely, credit is recorded after debit

-- T-format ledger: Debit is placed on the left side; and credit is placed on the right side

-- Personal Account: Debit is the receiver; Credit is the giver

-- Real Account: Debit what comes in; Credit what goes out

-- Nominal Account: Debit all expenses and losses; and credit all incomes and gains