definition of debit and credit?

Answer 1

hmmm if u mean plastic cards then debit is the account with your money thats is available to u free of charge.

and credit card is the money lend by banks to you, of course with lots of charge for which you have to pay monthly charge the interest of the amount used by u (actually credit cards r the worst way of borrowing money from bank, overdrafts or loans r better)

if you mean accounting...then basically assets r debit n liablilities r credit.

e.g. the business moneys, stock, car, building is on debit. loans from bank, the money u owe for stock, the money u owe for employees is on credit. but its much more complcated then that.. :)

Answer 2

I had to take an accounting class and this functionality drove me crazy!

Debit and Credit are formal bookkeeping and accounting terms that have opposite meanings. It is more common to use the terms in the plural, Debits and Credits. "Debit" also refers to the left side of a general ledger account, while "Credit" refers to the right side. People do not understand why a Sales amount is treated as an negative value (Credit) and an expense is treated as a positive value (Debit). If the value of the debits are greater than the value of the credits, then the balance on the account is a debit and should not be described as a positive value balance.

For example, revenue is coded as a credit. After recording a day's sales invoices, the company will have credited a certain amount in revenue, but the customers ledger will hold a debit balance being the amount of the unpaid invoices.

Confused...? This only works for people in accounting because they understand it fully. It's a day-to-day ritual for them.

Answer 3

A debit is a liability.

A Credit is an asset.

If someone debits you, they take money from you.
If they credit you the give you money.

If your account has a debit balance, you owe the bank money.
If your account has a credit balance, you are owed the moeny.

Just a couple of examples but hope this gives you the idea.

Answer 4

Debit means you are subtracting and credit means you are adding. If you are referring to the cards. A debit card is issued with a bank account and automatically deducts the money from your account when you use it. You also have to have enough money in the bank to cover the purchases. A credit card means that you can purchase the item and the credit company will send you a bill that you pay later. (There are interest fees charged in some cases.) You don't have to have any money in the bank when you make the purchase, but you will have a limit that you can't go over.

Answer 5

For accounting?

Debit means subtract from while credit means add to.

Debiting $4000 from a $5000 account leaves $1000 in the account.

Crediting $4000 to a $5000 account leaves $9000 in the account.

Answer 6

I agree with the first answer but then looking at it compared to the question seems interesting when you think we have debit and credit cards... a credit card gives you money that you really don't have since you still have to pay it back and then some.

Answer 7

debit and credit is used in a double entry accounting system.
Trying to answer this in pure accounting terms.. First got to know the type of account we talking about.. there are 3 types:
real accounts- tangible accounts (e.g. cash)
nominal accounts- accounts that have no tangibility ( e.g. income and expenses)
Personal accounts--people , entities (e.g. a creditor who lends u money)
now the rule becomes simple.
for real accounts - debit what comes in credit what goes out
nominal accounts- debit losses and expenses , credit gains and income
personal accounts- debit the receiver and credit the giver
e.g
if a person name ABC gives u cash
cash is real- it comes in- so u debit it
ABC is a personal a/c- he is a giver- so u credit it

entry- cash a/c debit
abc account credit
so cash has debit balance
abc has credit balance

Answer 8

If you are refering to plascic cards then with a debit card the money is removed from your account as soon as you pay the bill whereas with a credit card the bill is transfered to your credit card account where you can pay it off at the end of the month or pay by installments.

Answer 9

debit is taking away and credit is adding to

Answer 10

debit-means you have earned the money

credit- its not yours