What do you understand by debit and credit ? Do you think debit always stand for decrease in amount and credit for increase?
Answers
Answered by
4
In a journal debit means inflow of cash and credit means outflow of cash. The word debit has been derieved form the Italian word debito and credit had been derieved from the word credito.
Dr. stands for debit and Cr. for credit. Debit doesn't always stand for decrease in amount because while journalising the transactions debit is regarded to be inflow of cash into and account and vice versa for credit
Similar questions