Debit and credit meaning: When is a Debit and Credit

When is a Debit and Credit used? Double entry bookkeeping uses the terms Debit and Credit. They refer to entries made in accounts to reflect the transactions of a business. The terms are often abbreviated to DR which originates from the Latin ‘Debere’ meaning to owe and CR from the Latin ‘Credere’ meaning to believe. Do not try to read anything more into the terms other than debit means on the left hand side and credit means on the right hand side of the accounting equation. 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. A simple, visual guide to debits and credits and double-entry accounting. Beginners welcome. Learn what is debit and credit in accounting, how to record transactions, and the golden rules of debit and credit. See practical examples of debit and credit entries for different accounts and journal entries.