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?
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?
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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