why does debit increase a T account for assets?

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  • new to accounting93
    New Member
    • Jan 2025
    • 1

    #1

    [Question] why does debit increase a T account for assets?

    Debit and credit?

    In general if we pay someone we say the money has been debited from our account and vice versa for credit. I couldn't understand how debit is money coming in and credit money going out?
  • Neville Bailey
    Diamond Member

    • Nov 2010
    • 2786

    #2
    When you process a purchase of an asset, you debit assets and you credit the bank account. In other words, money is going out, not coming in.

    Likewise, if you process an expense, you debit the expense account and you credit the bank account.
    Neville Bailey - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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