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Clients' asset deposited to the bank is a liability of the latter. Hence, deposits are credited in the client account, which means liability to the client has increased, while withdrawals are debited to decrease the liability. Interest earned are likewise credited while bank charges are debited. Liabilities, as we all know, have normal credit balance, meaning it increases when credited and decreases when debited.
from all the above I think u have another sample answer more easier from my Physical history
Dream to be and read my below comments :-
Debit = the one who take.
Credit = the one who Give
From above according to the records company of view and by applying in the Questions the answers is
Who Take = Bank , then Debit ,,,,, Who Give out = Bank , then Credit
Regardless the transactions name or process.
Credit in the economy is the ability to borrow a idiomatically hand the commitment of third-party lending, or where a person in the sense that the creditor (the bank) to grant the debtor (borrower) notice of the time committed to the debtor (borrower) upon its completion to pay value of the debt plus the previously agreed interest between the two parties.
It can be defined as well as the confidence that followed the bank in terms of what, whether physically or mentally that gives him a sum of money to be used for a specific purpose during the agreed period of time and under certain conditions up to a certain yield and guarantees the bank managed to buy the value of money in case the client has stopped payment.
Discount contract whereby the bank is committed to the organization that paid for pregnant prematurely compared to the amount of missed her commercial or other negotiable bonds that solves paid on a certain date papers, that need to be cold if you do not value the original obligor. Bank and the institution against the opponent process utility commission. "On the basis of this definition is correct to say that the discount contract assumes a promissory note in the customer due fulfillment of the hand after the order given, who shall Ptzaerha to the bank endorsement carrier of ownership compared to distract his bank worth less reward in the process.
We note that in the last opponent process is the process of credit given to the nature of the service offered by the bank to the customer that a credit service primarily, and this is the opinion of the French jurisprudence.
Debit and credit in the point of view of a banks are :when a customer deposit his/her money into bank this is shown in the side of credit by Bank. Because customers deposit are the liability for a Bank on the other hand, When a Bank lend loan that it shown in the side of debit by Bank . Because that is an asset for a Bank
Banks in respect of their customers usually deal with Deposit accounts and Loan Accounts. It also maintain collection accounts on behalf of customers and Guarantee Accounts in favor of Third parties.
These are all in addition to regular business accounting procedure for banking business and additional accounts for income and expenditure, assets and liabilities. The debit and credits are one and the same applicable rules as in any other case.
In case of Deposit Accounts, A debit in the account denotes reduction of Banks customer liabilities as a result of1. Withdrawal from the accounts by the customer2. Transfer from the particular account to other deposit accounts or even loan accounts3. Reduction from the customers account for Bank charges, service charges or collection/incidental charges, or charges for using cheque books or related aspects, or reductions on account of stipulated minimum balances etc.
Credit in the deposit accounts means : creation of a new deposit account, or depositing additional amounts in the deposit account, or accumulation of interests, or transfer externally to a particular account, or internal transfer from other accounts to this particular account.
In case of Loan accounts or advance accounts: Debit means creation of the asset for the bank or charging interest or service charges or additional disbursements, or withdrawal from a facility account such as Overdraft or cash credit .
Credit in the Loan account means remittance by the Borrower or transfer of amounts collected on behalf of the borrower or transfer from the deposit account of the borrower, or set off the account by disposal of securities entrusted with the bank by the borrower for availing loans or by other recovery proceedings.
Other aspects as usual with respect to contingent liabilities in respect of guarantees(contra account creation) similar for collection accounts for outstation instruments etc.
(A lot more to explain but give space for imagination)
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In general we categorise debit and credit based on different accounting types likewise personal, real and nominal account. But when it comes to bank perspective, debit indicates withdrawls and credit indicates deposits which the customers maintain their accounts with the banks.
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