Question

What is the meaning of debit and credit

Answer 1

Answer:

A debit increases asset or expense accounts, and decreases liability, revenue or equity accounts.

A credit is always positioned on the right side of an entry.

It increases liability, revenue or equity accounts and decreases asset or expense accounts.

Answer 2

Answer:

The term debit comes from the word debitum, meaning "what is due," and credit comes from creditum, defined as "something entrusted to another or a loan."23 When you increase assets, the change in the account is a debit, because something must be due for that increase (the price of the asset).