Accounting questions...?

Question

In Accounting what is the different of debit and credit...I get confused..it debit for deposits and is credit for account payables..confuses here..please help..

Answer 1

Oh, wow. I could write way more than Yahoo will allow. Ok, how's this.

Assets are things you own. Things you own should have a debit balance.

Liabilities are things you owe. Things you owe should have a credit balance.

Equity is the difference of these two. If equity has a credit balance, then you own more than you owe. If equity has a debit balance, then you owe more than you own.

That's the balance sheet. Now, for the income statement:

Revenues and all income accounts have a credit balance.

Expenses have a debit balance.

Here, go to this website:

http://www.businesstown.com/accounting/basic-terms.asp

This should be helpful!

Answer 2

Debits increase assets and credits increase liabilities. For instance, if you paid for a delivery truck with a credit card you would debit the asset account Delivery Trucks and credit Accounts Payable. If you then used cash to pay off your credit card then you would credit Cash and debit Accounts Payable to decrease your liability.