Eva asked in 教育與參考其他:教育 · 2 decades ago

accounting

Hi everyone,

i dont understand what is the different between debit and credit in accounting. please, explain those to me. i also dont get the journalize rule...

thanks

2 Answers

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  • 2 decades ago
    Favorite Answer

    Well, in the accounting, the DEBIT side is the left side of an account, and the CREDIT side is the right side. For the assets accounts, like Cash or Supplies, the amount debited is the amount increased, and the amount credited is the one decreased. Expense and Owner's withdrawals are also this kind of accounts. The other ones, including Revenue and all the other liability and owner's equity accounts, debit the amount decreased and credit the amount increased.

    For example, if you bought a building worthing a thousand dollars by cash today; then you should journalize this transaction like this:

    .........................................................Debit............Credit

    ............................Building .............$1,000

    ...........................................Cash......................... $1,000

    All the dots above are not neccesary. I'm just trying to show you the form of a journal.

    I hope this explanation is clear enough for you. Good luck!

    2005-01-24 02:44:45 補充:

    Eva you are right about that revenue is your gain. But more detailly, the revenues are increases in owner's equity. And expenses and owner's withdrawals are decreases in owner's equity.

    2005-01-24 02:45:06 補充:

    Expenses and revenues influence the owner's equity, by creating a net income or loss. That's why they are including in the credit. However, expenses and withdrawls are actually minused, so we record them oppositely. Understand?

    2005-01-24 02:45:29 補充:

    An example:

    ..........Debit........Credit

    Cash......$500

    .......Revenue..........$500

    This is the record of earning a $500 revenue and receiving cash.

    Hope you'll find this helpful!^^

    Source(s): 會計教授
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  • 2 decades ago

    debit is people who lend somemoney to other people, but credit is a people's fame who borrow somemoney from other people.

    In addition, if you want to ask is the rule of writing diary, just to write the things happened every day.

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