What are debits and credits?

Asked by Last Modified  

7 Answers

Follow 0
Answer

Please enter your answer

Assistant professor

Debit and credit are the effect which we give the transaction in case of accounting transaction which is differ and based on the nature of transaction
Comments
Dislike Bookmark

MBA(Finance)

Debit what comes in Credit what goes out Dr the receiver Cr the giver Dr are all expenses and losses Cr are all gain and income
Comments
Dislike Bookmark

Business doubts

goldan rule is debit whats come in and credit whats goes out
Comments
Dislike Bookmark

Will provide teaching on real time scenario on sap fico with all kind of projects.

In order to understand the debit and credit. U should keep the golden roles in mind. Personal a.c- debit is receiver and credit is giver. Real a.c- debit want comes in and credit what goes out And nominal a.c- debit is all expenses and credit is all ur income
Comments
Dislike Bookmark

Tutor with Banking and Accountancy experience of 35 years

There are two types of accounting. One by adapting the principles of double entry ie called double entry system of book keeping. 2. other modes, whatever maybe, is termed as single entry system of book keeping. Under double entry, there are two aspects for a transaction. They are debits and credits....
read more
There are two types of accounting. One by adapting the principles of double entry ie called double entry system of book keeping. 2. other modes, whatever maybe, is termed as single entry system of book keeping. Under double entry, there are two aspects for a transaction. They are debits and credits. All the Expenses and assets are debited and all incomes and liabilities are credited read less
Comments
Dislike Bookmark

Professor

The Financial transaction of the business entity is divided into debit or credit transaction. Every transaction will have 'debit as well as credit transaction as per double entry system of book-keeping'. THE GOLDEN RULES OF DEBITS AND CREDITS ARE: 1. Personal a/c : Debit the receiver and ...
read more
The Financial transaction of the business entity is divided into debit or credit transaction. Every transaction will have 'debit as well as credit transaction as per double entry system of book-keeping'. THE GOLDEN RULES OF DEBITS AND CREDITS ARE: 1. Personal a/c : Debit the receiver and Credit the giver 2. Real a/c : Debit what comes in and Credit what goes out the entity 3. Nominal a/c : Debit all expenses and losses, and Credit all incomes and gains. read less
Comments
Dislike Bookmark

In double entry book keeping system, Debit (DR) and Credit (CR) have important roles to journalize the transactions. For Every debit, there must be equal amount of credit for balancing. The Golden Rules classifies the account in to 3 type and signifies the rules for debit and credit. 1) Personal...
read more
In double entry book keeping system, Debit (DR) and Credit (CR) have important roles to journalize the transactions. For Every debit, there must be equal amount of credit for balancing. The Golden Rules classifies the account in to 3 type and signifies the rules for debit and credit. 1) Personal Account ; 2) Real Account; 3) Nominal Account Rule For Personal Account- Debit the receiver and Credit the Giver Rule for Real account- Debit what comes in and Credit What goes out Rule for Nominal Account- Debit all Expenses / Losses and Credit all Incomes / Gains. The double entry accounting system also prevails the accounting equation, Asset = Liability + Equity The criteria for Debit and Credits are applicable for all elements in the accounting equation mentioned below. Asset- Increases (Debit) | Decreases (Credit) Liability- Increases (Credit) | Decreases (Debit) Equity- Increases (Credit) | Decreases (Debit) Note:The Net profit or portion of net profit always increases the values of Equity and at the same time Net Loses or Portion of Net Losses decreases the value of Equity Profit = Income - Expenses Losses = Expenses - income Therefore, increase in Income and Decrease in Expense are always Credit and Decrease in Income and Increase in Expense are always Debit. read less
Comments
Dislike Bookmark

View 5 more Answers

Related Questions

I want to give coaching of fundamental accounting,cost and management accounting,statistics,maths at my home. But my mother tongue is Hindi.Can I teach at my home place?
Of course you can
Amandhiman
What is the fees for b.com tuition.
Per hour Rs. 300/-
Aruna Sriram
Can a biology student do a BCom after 12th?
Not at all good
Ramala
0 0
View Comments9
How to make pakka Nati style Chicken Biriyani?
Ingredients 500 grams of chicken 500 grams rice (Sona masuri or bullet rice) One big onion sliced Four tablespoon oil 2-3 tablespoon chilli powder Two tablespoon coriander powder Salt For...
Ramakrishna
0 0
View Comments6
How can i speak english very easli
watch english news channels,english movies and try to understand them and also start thinking in english so that u feel yourself confident in speaking english
Barun
0 0
View Comments8

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Kinds Or Classification Of Contracts
All the contracts may be broadly classified into following three main categories: According to enforceability i.e., legal validity. According to formation i.e., mode of creation. According to performance....

Vidyadhan Academy Pvt. Ltd.

0 0
View Comments0
Today Is Demonetisation. What is Next?
Mr. Modi taught us the term "Demonetisation". I need not to write its meaning as most of us have learned its true meaning through practical experience. Impact of Demonetisation: 1. Dollar Rate conversion...

Venkatesh

0 0
View Comments0
Account Used To Record The Premium When Issuing Common Stock
The premium on issuing common stock is rarely recorded in an account having that name. It is more commonly recorded in an account called Paid-In Capital In Excess of Par Value. It may also be recorded...
K

Khushboo B.

1 0
View Comments0
Know These Important Things About Investing & Trading In Bitcoins
The talk of the trading town these days is bitcoins. As you might know, I have already written some articles on bitcoin but due to overwhelming request of many Indian investors and trader, here’s...

Tradingcoach

1 0
View Comments0
Advance Tax Liability For The A.Y. 2018-19
Advance Tax Liability for the A.Y. 2018-19: The Finance Act 2017 (Act No. 07 of 2017) has not bring any change in Advance Tax provisions. Therefore the Advance Tax provisions related to A.Y. 2017-18...

Fr Prashanth Reddy

Recommended Articles

6 Exam Hall Tips To Follow, For Every Good Student

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

Science, Arts Or Commerce - Which One To Go For?

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

How To Choose The Right School For Children?

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

5 Engaging Activities For Children To Get...

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

Find BCom Tuition near you
BCom Tuition in Delhi
BCom Tuition in Mumbai
BCom Tuition in Bangalore
BCom Tuition in Hyderabad
BCom Tuition in Chennai
BCom Tuition in Kolkata
BCom Tuition in Pune
BCom Tuition in Gurgaon
BCom Tuition in Jaipur
BCom Tuition in Ghaziabad

Looking for BCom Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you