Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is Debit balance and Credit Balance?

user-image
Question ajoutée par Rajkumar Achuthanandam , Accountant General , Al Hadaf Marketing L.L.C
Date de publication: 2015/07/18
Iqbal Hossain
par Iqbal Hossain , Asst. General Manager , Green Bird Properties Ltd

  1. When you receive cash it will credit and when you spend that will be debit. 

Mohammed Asim Nehal
par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Entries to the left side of the account are debits (DR), and accounts with left sided balances (asset accounts and expense accounts) are debit accounts. Entries to the right side of the account are credits (CR), and accounts with right sided balances (liability accounts, owners' equity accounts, and revenue and profit accounts) are credit accounts. Understanding debit and credit is essential for bookkeeping and analysis of balance sheets.

 

  •  debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.
  • credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.

More Questions Like This

Avez-vous besoin d'aide pour créer un CV ayant les mots-clés recherchés par les employeurs?