06-27-2006, 07:56 PM
-Debit means commes in.
(simply what you have your own, either receivable or in your custudy)
All the Debit side are CURRENT ASSETS (includes all receivables, stocks, Cash/Bank Balances, advances, prepaid exp) and Fixed Assets.
-Credit means goes out.
(simply what you have to pay and your capital which is payable to you)
All the Capitals, Loans & All other payables, provisions o/s, etc.
PLEASE REMEMBER ALWAYS-
Debit balances are receivable. Credit balances are payable.
Debit balances shows losses and credit balances shows gain.
Debit comes-in & Credit goes-out.
In Accounting System every transaction effected to two catagory or Account. One A/C will be Debited, where item/figures are coming-in & second A/C will be Credited, where item/figures are going-out.
(simply what you have your own, either receivable or in your custudy)
All the Debit side are CURRENT ASSETS (includes all receivables, stocks, Cash/Bank Balances, advances, prepaid exp) and Fixed Assets.
-Credit means goes out.
(simply what you have to pay and your capital which is payable to you)
All the Capitals, Loans & All other payables, provisions o/s, etc.
PLEASE REMEMBER ALWAYS-
Debit balances are receivable. Credit balances are payable.
Debit balances shows losses and credit balances shows gain.
Debit comes-in & Credit goes-out.
In Accounting System every transaction effected to two catagory or Account. One A/C will be Debited, where item/figures are coming-in & second A/C will be Credited, where item/figures are going-out.
