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+--- Thread: logic of words 'debit ' and 'credit' (/showthread.php?tid=4619)
logic of words 'debit ' and 'credit' - zeeshan_909 - 07-08-2007
hello!
can anyone tell,why all the assets and expenses debited and all income,liabilities and capital are credited.
can we make all assets and expense credit and vice versa.
what are the literary meanings of 'debit' and 'credit'
- shsaeed - 07-09-2007
Debit a payment made or owed
Credit Transaction between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower)
- uvahidy - 07-10-2007
simple increase in asssets or expenses = debit
decrease in asssets or expenses = credit
increase in income or liabilities = debit
decrease in income or liabilities = credit
- Mahtab - 07-10-2007
what are the literary meanings of 'debit' and 'credit'
In Accounting Debit means Left
or Left hand side and
In Accounting Credit means Right
or Right hand side
- uvahidy - 07-11-2007
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by uvahidy</i>
<br />simple increase in asssets or expenses = debit
decrease in asssets or expenses = credit
increase in income or liabilities = debit
decrease in income or liabilities = credit
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
oh sorry it's not so simple
increase in asssets or expenses = debit
decrease in asssets or expenses = credit
increase in income or liabilities = credit
decrease in income or liabilities = debit
what do i understand from dr. and cr. that there is no as such logic behind these words literally , these are just like function #1 and function #2 , there are certain happinings u should use functoin #1 for them and for others use function #2, their literally meanings can confuse.