Debit and credit

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amruth

amruth (Querist)
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18 July 2012 can any one help me to understand what is debit and credit

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
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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.

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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19 July 2012 you can read golden rules of accounting. then you can under stood easily

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Venkattaraman A

Venkattaraman A (Expert)
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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