10-20-2005, 11:50 AM
Debits and credits are easy to define and once defined make learning accounting ever so much easier for novices.
In each transaction there is an exchange of values. A Debit is the value received while a Credit is the value given.
Consider the transaction of eating in restaurant, it receives your money thus Debit the Asset Account "Cash"; it gives a dining experience thus Credit the Revenue Account "Food and Beverage Sales".
Debits are the values received. Credits are the values given.
These definitions helped me. Hope they help you too!
In each transaction there is an exchange of values. A Debit is the value received while a Credit is the value given.
Consider the transaction of eating in restaurant, it receives your money thus Debit the Asset Account "Cash"; it gives a dining experience thus Credit the Revenue Account "Food and Beverage Sales".
Debits are the values received. Credits are the values given.
These definitions helped me. Hope they help you too!