hi Professionals..DR and CR.......?

hi Professionals..DR and CR.......? - Printable Version

+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: General (https://www.accountancy.com.pk/forum/forum-general)
+--- Forum: General Discussion (https://www.accountancy.com.pk/forum/forum-general-discussion)
+--- Thread: hi Professionals..DR and CR.......? (/thread-hi-professionals-dr-and-cr)

hi Professionals..DR and CR.......? - Ehrar_ACMA - 10-21-2004

Dear Friends

I want to share ur comments here.....If any new student in the area of accounts ask the definition of Dr & Cr..specially medical students..how should we define in easiest or precise way...

what I tell normally is
"Debit and credit records are two column for plus(+), minus(-) or (-), (+) to adjust the balances and to show normal balances.."

Suppose A/R shows $20,000 Dr and during years $15,000 CR
then plus & minus =Minus with the sign of greater no..i.e.%5,000 Dr adjusted balance

Plz comments in easy words for new students ..

Kh. Ehrar Ul Hasan
APA,ACMA,CIA(Usa),MA(Eco),CIMA(Inter),IBP-Stage-I (Only Sky is the limit.$$$.....

- Azeem Shah Khan - 10-21-2004

Definitions of Debit & Credit

DEBIT

The left column of the Ledger/Journal is called DEBIT.

CREDIT

The right column of the Ledger/Journal is called CREDIT.

I know in order to clear the distinction b/w the two, teachers often explain it by way of + and -. Although i dont agree with the concept but as long as it serves the purpose then its fine.

Regards

azeem

- Apocalypse - 10-21-2004

Debit is what comes into the business

Credit is what goes out of the business

This is the most clear concept of DR,CR

my teacher told me this in my first accounting class and it really helped

- Ehrar_ACMA - 10-21-2004

Dear Friends Hi
Mr.Apocalypse if ur teacher told u this in the initial level then i m sure u have faced this problem for a long period or might me now...i m not kidding ....This is a blunder to say all in coming r Dr & vice versa...

MR Azeem
I said they r two column ok...Now a days diff ledgers ,generals & reports are used for reporting ....always ur definition of left & right coulmn r not true...............
e.g. see the presentaion of balance sheet as per company law..Does ur definition apply...?..........

Regards

Kh. Ehrar Ul Hasan
APA,ACMA,CIA(Usa),MA(Eco),CIMA(Inter),IBP-Stage-I (Only Sky is the limit.$$$.....

- Azeem Shah Khan - 10-22-2004

<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote> MR Azeem
I said they r two column ok...Now a days diff ledgers ,generals & reports are used for reporting ....always ur definition of left & right coulmn r not true...............
e.g. see the presentaion of balance sheet as per company law..Does ur definition apply...?..........

<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>

Dear Ehrar

I am sure your would APPRECIATE and IDENTIFY the difference b/w ledger/journals/prime books of entries and financial statements.

i m sure you are not asking me to find DEBIT and CREDIT in a balance sheet.......are you???

Yes you are correct Debit and Credit are the names of two columns of a LEDGER/JOURNAL/ANY OTHER BOOK OF ENTRY where the left column is called DEBIT and right column CREDIT.

It is an accounting rule and have no SCIENTIFIC or RATIONAL reasoning why Debit is always on left? or why are they called Debit and Credit and why not Left and Right?

as i mentioned in my previous post, i dont agree with the concept of + and - or Incomming and Outgoing, this method always confuses the students. Rather give them this table and asked them to learn by heart ....yes Rattafication once they have mastered this Ratta then asked them to use their accounting concept. it is like when we were in class 1 or 2 we learnt Tables from 2 to 10. but unless we learnt that we could not go to the next stage which was DIVISIONS, so sometimes it is better to accept the fact as it is and once u have acheived significat competence over the USE of it - then use ur concepts.

the table is as follows

Increase Decrease
Assets Debit Credit
Expenses Debit Credit
Liabilities Credit Debit
Revenue Credit Debit
Capital Credit Debit

Kind Regards

Azeem

- Azeem Shah Khan - 10-22-2004

i am unable to draft the above table in the required format.

apologies for that

azeem

- smraza - 10-22-2004

Hi all,
I dont know the meaning of Dr. and Cr. but i would like to add that for every Dr. there must be a Cr. for the same and vice versa (please dont mention the single entry system as i hate it). Thats we call them "Lazim o Malzoom" in urdu. But If i have met Mr.Lucas Pacioli before, i must have killed him for invention of Accounting. <img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>

SMR

- Azeem Shah Khan - 10-22-2004

this is not rocket science, Debit is the left column and Credit is the right column of a ledger/journal...........there is nothing more to it...........u can take my word for it.

regards

azeem

- XBRL - 10-22-2004

Debit and credits were invented by Sir Issac Newton.

Just picked by bunch of ppl through third law of motion which says every action has its equal and opposite reaction thats y every debit has its equal and opposite credit

Isnt it

- Azeem Shah Khan - 10-22-2004

didnt know that accounting has got any relations with physics.

thanks for the info

azeem

- Sarfaraz - 10-25-2004

Hi all,
I dont know the meaning of Dr. and Cr. but i would like to add that for every Dr. there must be a Cr. for the same and vice versa (please dont mention the single entry system as i hate it). Thats we call them "Lazim o Malzoom" in urdu. But If i have met Mr.Lucas Pacioli before, i must have killed him for invention of Accounting.

agreed with sm raza

There is a will. There is a way.
0333-4502662