Compare credit and debit.

The major differences between credit and debit are as follows −

Credit

• It decreases in assets and increases in liabilities.

• It indicates the amount withdrawn.

• It represents in the right side of T format ledger.

• It is recorded as GIVER in a personal account.

• It is an amount What Goes Out in real account.

• It records all incomes and gains in Nominal account.

Debit

• It increases in assets and decreases in liabilities.

• It indicates an increase in asset/amount.

• It represents the left side of T Format ledger.

• It is recorded as RECEIVER in personal account.

• It is an amount What Goes In, in real account.

• It records all expenses and losses in Nominal account.

Bhargavi Mandalika

Published on 25-Jul-2020 10:46:27