Accounting for Beginners | What is Debit & Credit ? Difference Between Debit and Credit | #1

Accounting for Beginners | What is Debit & Credit ? Difference Between Debit and Credit |
Debit and Credit are two most common words in finance and accounting
In double entry book system, every debit must have a corresponding credit entry.
A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.
A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.
Whenever an accounting transaction is created, at least two accounts are always impacted, with a debit entry being recorded against one account and a credit entry being recorded against the other account. There is no upper limit to the number of accounts involved in a transaction - but the minimum is no less than two accounts. The totals of the debits and credits for any transaction must always equal each other, so that an accounting transaction is always said to be "in balance." If a transaction were not in balance, then it would not be possible to create financial statements. Thus, the use of debits and credits in a two-column transaction recording format is the most essential of all controls over accounting accuracy.

There can be considerable confusion about the inherent meaning of a debit or a credit. For example, if you debit a cash account, then this means that the amount of cash on hand increases. However, if you debit an accounts payable account, this means that the amount of accounts payable liability decreases. These differences arise because debits and credits have different impacts across several broad types of accounts, which are:

Asset accounts. A debit increases the balance and a credit decreases the balance.
Liability accounts. A debit decreases the balance and a credit increases the balance.

[noorealam]

Thank you
Being a science student, I understood it in the first shot

[mehvishiqbal]

Thanks alot sir you are great your explanation way is too much awesome

[rakeshjoshi]

Sacha khasha tha Algebra & gometri .
kha fsa diya Dr.cr mai.
Sir pura mind Gom gya Debit or credit mai.

[jonathangonmei]

Thank you so much you have cleared my doubt

[shubhadakardekar]

Sir still I am confuse plz try to give more example in next video but this video was also very helpful my 80 percent confession is clear

[debasmitasahoo]

Tq so much bro...❤️
Lv u..😘😘
Thnx thnx a lot..

[poojapaarcha]

Bhaiya
Accounting ke basic concepts ki aur video banao na plz
Like what is accounting? Ledger, cost accounting, financial accounting, type of asset and etc..

[samidha]

You explained it in very easy language & very nicely.

[ermohit]

It was very thanks...I understood this concept in 10 min via your Vedios

[dedicated]

Your voice just like jasprit bhumarah....

[rakeshkumarsahoo]

Please explain what is credit and debit in bank and customers point of view.

[nishasharma]

thanks for the basic concept sir but explain what is the actual meaning of debit and credit in another video

[ssony]

Thank. You so much sir.. It was very helpful..

[mandeepwalia]

Great Video, Thank you so much for generously sharing your time and expertise.

[manoharkalal]

Thank you sir ❤❤best video ever of debit and credit 😊

[asadsayed]

It’s awesome ! More American approaches of accounting can you please explain

[AtarangiAcademy]

Very nice any simplified explanation of Debit and credit accounting.