Compare credit and debit.

Banking & FinanceManagementCompanies/Organisations

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  • It indicates the amount withdrawn.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.

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