Saturday 13 November 2021

Do the terms debit and credit signify increase or decrease, or can they signify either? Explain.

Do the terms debit and credit signify increase or decrease, or can they signify either? Explain.
Debit means the right side of the T-account and credit means the left side of the T-account. The increase or decrease of debit and credit depends on the nature of the account. If increase in assets and expanse, we make the debits and decrease in these accounts, we make credits. If increase liabilities, and revenues, we make the credit and decrease these accounts, we make debits.

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