Do the terms debit and credit signify increase or decrease or can they signify either?
by 
Anonymous
ANSWERS: 4
-
All in accounting it is conventional. In the balance sheet the assets are credited if they increase; in the liabilities side if debts are increased you debit; if decreased, you credit. Pls read http://www.dwmbeancounter.com/tutorial/Tutorial.html
-
They cannot signify either. A debit is an amount due, debts, liabilities A credit is money coming in; assets
-
It depends on the type of accounting journal you are using. In double-entry there is a defined debit and credit side. This could increase or decrease your 'bottom line'. Here's the common break down in a T-accounting, called so because it has the heading (account name) and have the two columns underneath: Debit Increase in asset accounts Increase in expense accounts Decrease in liability accounts Decrease in equity accounts Decrease in revenue accounts Credit Increase in asset accounts Increase in expense accounts Decrease in liability accounts Decrease in equity accounts Decrease in revenue accounts
-
In some cases, it(debit or credit) will be increased but, in some cases it will be decreased. It depends upon nature of transaction. We could not conclude that debit should implies the increasing value whereas Credit should implies the decreasing value.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC