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I think its sample answer for what is the difference between Debit and credit and you can apply it allover your life.
Debit is Asset while credit is liability according to General Journal entry, trial balance and balance sheet but according to income/profit and loss/financial statement credit is consider as income and debit as expense...........
Debit- normal balance account for Asset, Capital and Expense
Credit normal balance account for Liability and Income
Debit what comes in and credit what goes out.
Debit who receives and Credit who gives.
Debit all expenses & losses and Credit all incomes & gains
In simple language as per type of accounts:-
Real account: -Debit what comes in and credit what goes out.
Personal account:- Debit who receives and Credit who gives.
Nominal account:- Debit all expenses & losses and Credit all incomes & gains
I wish every account to apply my answer as its very smiple ,,,((( The one who take is always DEBIT & the one who give is always CERDIT ))).
OMG!
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