Answer to Question #220739 in Accounting for mno

Question

what is the difference between debit and credit

Answer 1

Solution:

Debits and credits are bookkeeping entries that are used to record and monitor incoming and outgoing funds in your business account. They are used to record double-entry transactions of a business.

A debit is normally positioned on the left side of an entry. A debit increases asset and expenses accounts while decreasing liability, revenue, and equity accounts.

 

A credit is normally positioned on the right side of an entry. A credit increases liability, revenue, and equity accounts while decreasing assets and expenses accounts.