What is the abbreviation for the accounting terms DEBIT and CREDIT?

0 votes
91 views
Ava Reeve asked 27-Nov-2017 in Business & Finance by Ava Reeve

What is the abbreviation for the accounting terms DEBIT and CREDIT?

1 Answer

0 votes
Vishal Kesarwani answered 01-Dec-2017 by Vishal Kesarwani
The abbreviation for the accounting terms debit and credit are Dr. for Debit Cr. for Credit.
Debit and Credit simply are 2 sides of accounting entries, rather signals to point whether or not one thing has gone up or down. Contradictory to the assumption that Debit means the incoming and Credit means outgoing, they're simply signals to point whether or not the accounting components (assets, expenses, liabilities, equity, and revenue) has augmented or decreased.

For e.g. If you purchase Associate in Nursing quality, there's a rise in assets thus you communicate or signal it by debiting it.
Just like we hold our index and finger in an exceedingly V form, it signals winning or we could say victory, prior to those debiting assets and expenses signal a rise and crediting liabilities, revenue, and equity signals a rise in them.