Let's understand Debit vs Credit in Accounting, their meaning, key differences in simple and easy steps using practical illustrations. Learn the basic concepts and rules of debit and credit in accounting, with examples and comparison chart. Debit indicates the destination of benefit, while credit indicates the source of benefit in a transaction. Learn how to record transactions in accounting using debits and credits, the terms that indicate which accounts are increased or decreased. See how debits and credits are used in T-accounts, journal entries, and financial statements. Debit and Credit What are Debit and Credit? In the double-entry accounting rule, every business transaction that is recorded must result in at least two entries being made, in which one is the debit and another is the credit; the total debits must equal the total credits.
