What do debit and credit mean in accounting terms?
Mohammed Fazeem2025-11-11T01:29:38+05:30To decrease an account you do the opposite of what was done to increase the account. At the end of an accounting period the net difference between the total debits and the total credits on an account form the balance on debits and credits the account. Every transaction that occurs in a business can be recorded as a credit in one account and a debit in another. Cash Let’s illustrate the general journal entries for the two transactions that were shown in the T-accounts above. Likewise when a business pays cash from its bank account it will credit cash in its [...]
