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When learning accounting for the first time, “Speed” and “credit” can be a bit confusing. Why? Because if you go to the bank cash and deposits, say the fund is: “I am credited X amount of dollars,” but if you take money from your account of our, the cashier will tell you, “I am your debit account X amount of dollars. ” And with debit machines in all directions, and credit cards in the pocket of anyone, the two accounting terms on a new meaning.

However, what we know about these two words are as important in the world of accounting, debit and credit cards quickly learned be unlearned. Why? As in the accounts, the term flow is used to describe a bank account, and that the debts actually credit accounts – the exact opposite of what we learned elsewhere.

In accounting terms, or credits or debits are “bad”, but they need each other to fluctuations at the end of the same. Each transaction in detail, regardless of whether a bond or an invoice has to pay both a credit and debit cards in the accounting world shown. This is the so-called double-entry bookkeeping “- so if you go to the bank, and the narrator says:” I have X amount of money credited to account “, as it is, the input of a similar amount this without you The same applies to the cash register. when you say, “I’m debiting your account X amount of dollars” – shows that the accounts made the credit for that amount elsewhere in the same time.

The best way to determine the debits and credits in accounting terms is to understand the following: what you receive, and where does it come from. The river is what they receive, and credit is where you got it from, in accounting terms. So for the sake of demonstration, let’s say you have a CD with your credit card. The CD is what you have, it is a burden in the world of accounting, and credit is the responsibility you carry your credit card for the same amount will be applied.

The bank can easily confuse people learning about the revenue and spending in the accounting sense, especially when it comes to liability. For example, if you put money in the bank, the bank’s liability to you increases, and that liabilities are loans, they will be credited to your account (in accounting terms). And when the bank lowered its responsibility to us (we pay from the bank), banks are debiting the liability account, an accounting standpoint.