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A DEBTOR IS AN ENTITY THAT OWES DEBT TO OTHER ENTITY . THE ENTITY MAY BE A PERSON , A COMPANY , GOVERMENT ETC AND THE COUNTER PARTY IS CALLED CREDITOR.FOR EG- IF X DRAWS MONEY FROM HIS/HER BANK "X" IS DEBTOR AND BANK IS CREDITOR AND IF X REPAYS THE MONEY TO BANK X IS CREDITOR AND BANK IS DEBTOR.
Debit: Means confirmation and book entry of1. Receipt of Cash/Bank/Transfer2.Receipt of Goods/Assets3. Concerned expenses for which you make payments(present or future)4.Personal indebtedness to your entity on account of a monitory dealing(s)5.Any losses (present or future).
Credit: Means confirmation and book entry of1.Payment of Cash/Bank/Transfer3.Movement of Goods/Assets from your entity3.Concerned income for which you receive payments (present or future)4. Your personal Owings to External parties on a account of a transaction(s)5.Any income (present or future)
The difference between the total debits and total credits in a single account is the account's balance. If debits exceed credits, the account has a debit balance; if credits exceed debits, the account has a credit balance.[3] For the company as a whole, the totals of debit balances and credit balances must be equal as shown in the trial balance report, otherwise an error has occurred
Debit is an accounting entry recording a sum owed, in my word debit - what come in, all the receiver and all expense and loses.
Credit is an accounting entry, which decrease the asset- in my word Credit - what goes out, all the giver and incomes and gains.
what comes inn is entered to debit and what geos out will entered to credit side of the Account
I With answer Mr Mohamad iqbal
DBIT WHAT COMES IN ,CREDIT WHAT GOES OUT.DEBIT ALL EXPENSES,CREDIT ALL INCOMES.IN PERSONAL ACOUNT-DEBIT THE RECEIVER AND CREDIT THE GIVER
simply
accounting transactions between accounts and accounts between people are similar
In Accounting
When an account increases , account be debit
When an account decrease, account be credit
In every transaction must be account debits = account debit
