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What do you think ? Is there any definition of DR & CR in accounting ??

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Question added by Waqar Arshad , Accounts Supervisor , Palm Aviation FZCO
Date Posted: 2015/01/29
Naseef Pacheeri
by Naseef Pacheeri , Sales Support , Savola Group

Credit

an entry in the right hand column of an account; credits increase liability, income, and equity accounts and decrease asset and expense accounts

Debit

an entry in the left hand column of an account to record a debt; debits increase asset and expense accounts and decrease liability, income, and equity accounts

Nagma Sodhi
by Nagma Sodhi , Internal Auditor , Punjab state power corporation ltd.

NOT DR & CR but specifically for DEBIT & CREDIT. DR & CR words are used during passing general entries,which indicates the nature of that transaction.

Imran Ahmed Mirza
by Imran Ahmed Mirza , Accounts Supervisor , Value Added Services Corp. client at Jang Group of Newspapers

There is NO any proper definition of Debits & Credits in accounting terms, it is based on accounting equation that all expenses and assets are debited and all liabilities, capital  and revenue are credited:

 

Assets               =            Equities

Assets               =            Liabilities  + Capital (Owners)

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