@Bhaskar: What you say may be true, except for your etymologies.
Credit is derived from ‘credo’ – the Latin, “I believe”.
Debit is derived from ‘debilitum’ – the Latin, “debt”.
If they were derived from Italian, they would be reversed; after all, “dexter” being Latin for “right” and destro being the Italian descendant. “Sinister” and “sinistra” being Latin and Italian for “left”.
Thanks so Much . This helped a great deal . New to Accounting . But after reading through . I’m enlightened
“Accounting is all about tracking stuff…” I love this short and simple definition of accounting, because accountants keep track of all transactions occurring at the beginning and the end of the accounting period and give account of everything that belongs to other people and the owners.
I always thought debit meant to increase and credit to decrease until I sat in an accounting class and clearly understood the normal balances of an account. That assets has a normal debit balance , liabilities normal credit balance, capital credit balance, expenses debit balance, and revenue credit balance. Also note that there are some contra accounts, i.e. for example, accounts that are asset accounts but has a normal credit balance like Accumulated Depreciation-equipment/building, revenue accounts that has a normal debit balance are sales discount and sales return and allowances.
This is one good way to learn from your peers…cause you never stop learning, and I learned that 25% of what you’ll learn comes from the classroom and 75% from other sources like the internet, libraries, friends & families etc… This is really nice.
Is Rivonia (comment #67) legitimate?
And even if it is, is it appropriate to advertise on your site?
I am seeking a program to assist me with my accounting ll class. I need something like math way. Do you know something similar to that? I need something to follow and help me work out the problem. I get where you’re going with the concepts, but I need real plug in working site. Can you help me?
Thanks a lot, though i am totally new to the accounting subject but as i m preparing for CIA (Certified Internal Auditor), this article helped me a lot to understand the basic concept of accounting…GOD bless you.
and it will be wonderful if you please add Linkedin, facebook etc sharing tools in ur articles…thanks
Great feedback:)…
I need advise on Sage Pastel, if anyone have experience in that please HELP
hi kalid i am fresh i dont understand account so what i do
What if the bill is to be paid in 30 day? Do I add in as an asset or equity?
Thanks, that was spam, just deleted!
Can you please Analize how long term debts are categorized in accounting equations for a company and their customers
hi guys I am sikelela i had about this page that its so helpfull so i had an suplimentary in Accounting and mathematics, would u assist me in accounting?
What is the method of closing stock???
hi
please help
to which type of account do the following belong and on which side of the account do you normally find the balance:drawings,rates,bank overdraft,stock,cash,discount,property
Was not grasping debit and credit concepts in course I’m currently doing and came across your page which simplified it beautifully-Thank you !
Thank you so much new student in basic accountant I believe I am going to make it I didn’t understand you made a clear way for me debit left credit right God bless you many more years to come
why not keep debit and credit side in balance sheet
Great explanation I find accounting very easy with your material