Results 1 to 2 of 2

Thread: why does debit increase a T account for assets?

  1. #1
    New Member
    Join Date
    Jan 2025
    Location
    knysna South Africa
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    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?

  2. #2
    Diamond Member Neville Bailey's Avatar
    Join Date
    Nov 2010
    Location
    Westville, Durban
    Posts
    2,781
    Thanks
    44
    Thanked 452 Times in 397 Posts
    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)

Similar Threads

  1. Replies: 1
    Last Post: 23-Aug-21, 11:28 AM
  2. [Question] Debit Loan Account
    By Privilege in forum Accounting Forum
    Replies: 0
    Last Post: 07-Feb-18, 01:08 PM
  3. [Question] CC loan account and profit shares from sale of assets
    By MarciaLU in forum Accounting Forum
    Replies: 1
    Last Post: 11-Sep-15, 06:48 AM
  4. [Question] Substantial debit member's loan account
    By trevorp in forum Accounting Forum
    Replies: 25
    Last Post: 02-Mar-13, 09:01 AM
  5. [Question] Directors' Debit Loan account
    By antonnkramer in forum Tax Forum
    Replies: 4
    Last Post: 18-May-12, 09:17 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •