Meaning of Debit and Credit

Meaning of Debit and Credit

Under the Double Entry System of accounting, each business transaction is recorded with dual aspects that mean debit and credit aspects. Both debit and credit originate from the Latin words. In Latin language, Debit means “Debere” and Credit means “Credere”. Therefore, Dr. is used as a brief sort of the word “Debere” and Cr. is used as a brief sort of the word “Credere”. Every business transaction involves at least two accounts for the purpose of recording, in which one account is debited and the other is credited. When we say an account is debited this means we will write an amount on the left side of
this account, on the opposite hand, once we say an account is credited it means, we’ll write an amount on the proper side of this account. Debit or credit also implies an increase or decrease in an account, depending on their nature (i.e. Personal, Real or Nominal).


Also, Read What is Account?