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

What is the difference between accounting and accountancy?
Accounting: To keep the record of each and every finance activity either in the ledger or journal form is called as accounting. It also depends on nature of business so accounting has the different meaning...
Deepak
What is the importance of entrepreneurship development in BCom?
Importance of Entrepreneurship - Entrepreneurship promotes economic growth, provides access to goods and services, and improves the overall standard of living. Many entrepreneurs also make a positive...
Pratik
0 0
5
How to calculate instant ime of 100000 ?
Time value of money
D
0 0
6
Which is the best proffessnal Course for become an entrepreneurs or business for women in india?
Hey Priya, Do any Management course where it helps you to understand the core management skills required for any Entrepreneur. Also, get some knowledge in the PR. All the above, you should have some excellent...
Priya
Is b.com coaching needed while studying for CS?
Not at all good
Shagufta
0 0
8

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

Ask a Question

Related Lessons

What is Computer?
Computers are human made electronic machines that perform tasks or calculations according to a set of instructions, or given programs. The first fully electronic computer machine was introduced in the...

Dr. Lalit Arora

0 0
0
SPECIAL EVENTS IN PARTNERSHIP
SPECIAL EVENTS IN PARTNERSHIP Admission Retirement Death Change in Ratio Combination When a New partner is admitted what are the changes occur? What are the things unavoidable changes? Can...

Fr Prashanth Reddy

8 0
0
Capital Expenditure v/s Revenue Expenditure
Capital Expenditure Revenue Expenditure It is incurred for acquiring Fixed Assets It is incurred for running productivity or earning capacity of business It results in increase the value...

Fr Prashanth Reddy

4 0
0
Company Valuation
Valuing a Company using different approaches:– Investors are always interested to know while they are buying the shares of a particular company, that whether they are getting the right value on their...

Krishan K.

3 0
0
How To Sort Out Journal Entry?
When we pass a journal entry, there are two parts to it. One is debit and another is credit. There may be one or more accounts to debit as well as credit in any journal entry. For every debit, there should...

Shweta J.

0 0
0

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 Bangalore
BCom Tuition in Mumbai
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 Noida

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