Debt and Credit rule,, Some one Knows about it...

hey neha its nothing just credit the person who gives debit the person who takes .Hope i am right.

that is very much simply. Debit Card - in which Bank ur havin account he gives u card an u can only use that amount which is in your Bank account i.g if you r havin 50000/- in ur account then u needed not to take cash wid you while u shopin... through crad u can do shopin 50000/- rs. Credit Card - this so simply. this is like you r bowro money from ur friend n can use this amoutn for 50 days widout any interest. after 50days u hav to pay interest on this amount. i.g you r havin credit card in ICICI Bank ur limit is 100000/- n u just shopin of rupees 15000/- n ur Billin cycle is starts from 20th of the month... u shope on 21st from 21st you got 50 days to use that money absoluetly free.. from 21st to 20 you hav 30days n 20 days more exsactly 50 days kkkkkk n well if u purchase some thing on 19th before ur cycle statrs like 21st then u got only 20 days coz ur billing period is from 21st to 20th k hope every thin is clear have a nice time sheryl is here wana emails from me simply mail me at my ld once sheryl_chauhan@yahoo.com

Hai neha-khan debit what comes in (money ,land anything which comes in is called debit)and credit is what goes out let it be anything.i think you have understood now if you are still in doubt mail me. bye

ok guys, there are some points here and there, but some are missing. Let me try to explain it. There are 3 types of accounts.. 1. Personal account 2. Real account 3. Nominal account According to the type of account the debit and credit would vary. For eg. If I am giving Neha Rs.100 then the Journal entry would be like this. Neha A/C Dr 100 To Sunil A/c 100 The rule is * Debit the receiver, credit the giver Lets take an example of a Real A/C I purchase some goods from Neha. If I purchase it for cash the entry would be Purchases A/C Dr 100 To Cash 100 If its on credit, ie, I havent paid the money yet. Purchases A/C Dr 100 To Neha 100 When I pay the money to Neha the entry will be Neha A/C Dr 100 To Cash 100 The rule is * Debit what comes in, Credit what goes out Here you would need some more explanation...When I purchased something the thing that came in got debited, and Neha got Credited because she is the giver... remember the first rule. Since cash went out it got credited.. 2nd rule please. For nominal accounts the debit and credit is reverse. For eg I purchase good worth Rs. 100 from Neha and she gives me Rs.10 discount the entry will be Purchases A/C Dr 100| ---------2nd rule Debit what comes in To Cash A/C | 90 ----------2nd rule again. But i only paid 90 for it To Discount A/c | 10 --------- 3rd rule. ------- 100|100 A/c tallies doesnt it? ======= But Neha would write a different entry Cash A/C Dr 90| -------since only Rs.20 was received Discount A/C Dr 10| -------3rd rule To Sales |100 ------2nd rule... value of what went out ------- 100|100 ======= The rule is *Debit all expenses and losses, credit all incomes and gains. Since I gained from from the discount I gave credit to discount Since the discount was an expense to Neha she debited it. Following are the three golden rules of accounting =============================================================== Debit the receiver, credit the giver (Personal accounts) Debit what comes in, Credit what goes out (Real accounts) Debit all expenses and losses, credit all incomes and gains. (Nominal accounts) =============================================================== Hope I made it clear.

Did you mean Debt or Debit? I have a site for you that may help you understand the accounting principles from an Islamic perspective: http://islamic-finance.net/islamic-accounting/acctg1.html

As a general rule, all assets and expenses are on debit side. While, Liabilies, equity, capital and income are on credit side. To reduce the we have to reverse their normal side (debit or credi). To add cash is to debit cash. To reduce/spend cash is to credit Cash. There can be as many debited or credited accounts per entry but atleast one each. But total debit and total redit should be equal. Example. I bought land for 1000 and equipment for 12; all in cash. DR. Land $1000 DR. Equipment $12 CR.Cash $1012

The one which comes is Debited and the one which goes out is Credited. For example. I buy furniture with cash. So furniture will be debited and cash will be credited.

The one which comes is Debited and the one which goes out is Credited. For example. I but furniture with cash. So furniture will be debited and cash will be credited.