It is then simple to produce a business's annual accounts by producing a trial balance, containing the debit or credit balance of each account, and rearranging them.
Debits are assets and credits are liabilities... I know this looks totally backwards from what people normally think, but bank statements are produced from the BANK's point of view and they're looking at it the other way, because to them, your money in the bank is a liability that they owe back to you.
If you are talking about point of sale transactions, debit transactions usually involve a pin, a fee can be added (not required to be same as cash), and the money is EFT's directly from your bank. Fraud protection on these transactions is voluntary (not backed up by federal law).
Credit transactions, however, go through visa or mastercard, require a signature (not a pin) and no fees can be added for the consumer. It must be treated the same as cash. There are strict federal fraud rules that protect consumers.
If someone at a store asked "debit or credit" credit is usually the choice that protects you more.
In double entry bookkeeping, debits and credits (abbreviated Dr and Cr, respectively) are entries made in account ledgers to record changes in value resulting from business transactions. Generally speaking, the source account for the transaction is credited (that is, an entry is made on the right side of the account's ledger) and the destination account is debited (that is, an entry is made on the left side). Total debits must equal total credits for each transaction; individual transactions may require multiple debit and credit entries to record.[1][2]
The difference between the total debits and total credits in a single account is the account's balance. If debits exceed credits, the account has a debit balance; if credits exceed debits, the account has a credit balance.[3] For the company as a whole, the totals of debit balances and credit balances must be equal as shown in the trial balance report, otherwise an error has occurred.
Accountants use the trial balance to prepare financial statements (such as the balance sheet and income statement) which communicate information about the company's financial activities in a generally accepted standardized format.
Debit means right and credit means left in accounting. So all transactions need to balance and all accounts have a normal debit or credit balance. Assets and expenses are normally debits but can got negative same with normal credits of sales, liabilities and depreciation and equity can go either way but normally credit.
So say you borrow money from a bank you would debit cash and credit the liability loan but the bank would do the opposite to them your loan is an asset so they would credit cash and debit the loan asset. When you get a debit or credit memo about your bank account it is from the viewpoint of the bank so them crediting your account means they gave you money you need to debit your cash account and credit something like interest income.
In simple words a debit card is like your personal storage. You put your money in there, and you can spend it. If you have $100 and a dress is $120, you will not be able to purchase it with your debit card. On a credit card, you cannot put money in there, it is more of a loan. If you see a $100 dress and you swipe your credit card, your credit card now has $100 you need to pay off later on
Debit-What went out. Credit-What came in.
Debit(+) Credit(-), simple knowledge of book keeping
i assume you mean in terms of credit card and debit card
a debit card is where you can spend as much money that is in your bank and a credit card is a card that will allow you to spend over the amount in you bank but you will how the bank any money that is not already in your bank
this words use in accounts terms . debit means is gone and credit means come.
Debit is a transaction involving money you have.
Credit is a transaction involving money you have to pay back
