What is difference between credit and debit?

[deepak]

I often hear people talking about credit and debit in banking and accounting, but I’m still a bit confused. What exactly is the difference between the debit and credit

 

[Rick_Grimes]

Credit means money going into your account (like a deposit or payment you receive), while debit means money leaving your account (like a withdrawal or purchase).

 

[isabel]

Debit refers to money taken out of the account whereas credit refers to money added to the account or deposited into the account.

 

[Emly]

Credit adds money to your account, while debit deducts money from it.

 

[denjoshep]

Debit and Credit are fundamental accounting terms:

• Debit (Dr): Represents an increase in assets or expenses, or a decrease in liabilities, equity, or revenue. It’s recorded on the left side of an account.
• Credit (Cr): Represents an increase in liabilities, equity, or revenue, or a decrease in assets or expenses. It’s recorded on the right side of an account.

In short, debits and credits keep the accounting equation balanced: Assets = Liabilities + Equity.

 

[Shane Warne]

Debit is money going straight from your account, or in accounting usage entries that increment advantageous condition or charge expenses and abate boom of obligation or-executive. Credit exists when borrowing or when buying with credit, such as in accounting statements, an increase in liabilities, equity or revenue or a decrease in assets or expenses.

 

[Gsusangrey]

In accounting, debits are those on the left side of an account which normally augment assets and expenditures. Credits are recorded on the right and normally augment liabilities, equity and revenue. All transactions should be matched in terms of debits and credits.

 

[danisjohn]

Credit allows you to borrow money to pay later, while debit uses funds directly from your bank account.