News:

Skill.jobs Forum is an open platform (a board of discussions) where all sorts of knowledge-based news, topics, articles on Career, Job Industry, employment and Entrepreneurship skills enhancement related issues for all groups of individual/people such as learners, students, jobseekers, employers, recruiters, self-employed professionals and for business-forum/professional-associations.  It intents of empowering people with SKILLS for creating opportunities, which ultimately pursue the motto of Skill.jobs 'Be Skilled, Get Hired'

Acceptable and Appropriate topics would be posted by the Moderator of Skill.jobs Forum.

Main Menu

Introduction to Debits and Credits

Started by Monirul Islam, May 19, 2018, 11:06:27 AM

Previous topic - Next topic

Monirul Islam

If the words "debits" and "credits" sound like a foreign language to you, you are more perceptive than you realize—"debits" and "credits" are words that have been traced back five hundred years to a document describing today's double-entry accounting system.

Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, meaning the amount will be entered on the left side of that account. Another account will receive a "credit" entry, meaning the amount will be entered on the right side of that account. The initial challenge with double-entry is to know which account should be debited and which account should be credited.

Before we explain and illustrate the debits and credits in accounting and bookkeeping, we will discuss the accounts in which the debits and credits will be entered or posted.

Source: https://www.accountingcoach.com/debits-and-credits/explanation