Explain what debits and credits are in accounting?

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Explain what debits and credits are in accounting?

2007-02-22 01:51:22 · 2 answers · asked by Miami J 1 in Business & Finance ➔ Taxes ➔ United Kingdom

2 answers

Debits increase an asset and decrease a liability. Credits decrease an asset and increase a liability. You would debit an expense because you gave up cash. You would credit an income account because you received cash.

2007-02-22 04:10:14 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋

debits to the left credits to the right. debits is a minus credits are a plus the difference is the balance

2007-02-22 01:57:16 · answer #2 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋