What is Debit and what is a Credit?
It is the left side of an account and is derived from an
Italian word Debito.
We have seen how an account is. It is in the shape of a T.
When I explained the meaning of an account to you, I told
you.
Account means when we record all transactions related to
one item at one place, it is called an account.
Like we recorded all transactions related to cash at one
place.
The cash that came was written on the debit side and the
cash that went was written on the credit side.
Debit means left hand side and credit means right hand side.
Then we find out how much cash came, how much went and how
much is left with us.
So Debit is the left side of an account and is derived from
the Italian word Debito.
Now friends, it is also written in some books that Debit is
made up of the word Debre.
Here Debito is written.
In many places it is also written that Debit records are
called Debit in short form and Credit records are called
Credit in short form.
So there are different theories.
So there should not be much debate on these things.
Just listen to what is written.
You mainly have to remember Debit and Credit.
In English, Debit and Credit are spoken.
Leave what is said in Italian.
In case where an account is to be debited, the entry is
posted to the debit side of an account and it says that the
account is debited.
Whenever we have to debit an account, like if we have to
debit a cash account, then whatever money we write, we will
write it on the debit side of the cash account.
Yes, that's why it will be debited.
When we write some item on the debit side, we will write it
on the left-hand side.
That's why it will be debited.
Like in cash, there is a debit side of money coming.
So suppose some cash is coming to your business.
So where will you write?
You will write on the debit side.
And as soon as we write on the debit side, whatever cash
came, for example, 8000 rupees, then we will say that the
cash account is debited with Rs.
And Credit is just the opposite of Debit.
If Debit is called on the left-hand side of the account,
then the right-hand side of the account is called Credit.
Credit is the right side of an account and is derived from
the Italian word Credito.
In case when an account is to be credited, the entry is
posted to the credit side of an account and it is said that
the account is credited.
If we have to credit an account, then we will write it on
the credit side.
Like a cash account.
If we are making a payment in cash, then we will have to
credit the cash account.
Because the rule of credit is credit what goes out.
So if we are making a payment in cash, then the cash will
go.
If cash goes out, then we will have to write it on the
credit side of the cash account.
And we will say that the cash account is credited by this.
As soon as we write it on the credit side of the cash
account.
Ok Sir.
So this is the meaning of Debit and Credit.
Thank you.