Accounting Debits and Credits
by, 06-Jul-12 at 03:30 PM (2578 Views)
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A beginner’s guide to understanding the difference between a debit and a credit in accounts.
DEBITS AND CREDITS
Memorize this rule – it is a strict rule throughout your accounting activities – it will never change!
Debit the receiver(the account that receives the benefit)
Credit the Giver(the account that is giving the benefit)
FOR EVERY DEBIT ENTRY YOU MUST TO A CORRESPONDING CREDIT ENTRY and vice visa. i.e every time you record a debit, somewhere else you must record a credit or vice versa.
Accounting is a double entry AT ALL TIMES!
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