What is debit cames in and credit go out tell me explain

Question

Accepted Answer

Debit represents incoming funds while credit represents outgoing funds.

Debit is used to record an increase in assets or a decrease in liabilities or equity.
Credit is used to record a decrease in assets or an increase in liabilities or equity.
For example, when a company receives cash from a customer, it would debit cash and credit accounts receivable.
Conversely, when a company pays a supplier, it would credit cash and debit accounts payable.

Accepted Answer

The golden rule for

1. Personal account :related to person names and company names.

Eg: Infosys pvt ltd, manohar. Rule: debit:receiver.

Credit:giver.

2. Real account: It denotes explains all assests and liabilities.

Eg: Furniture,machinery,Bank loan. Rule:what comes in :debit.

What goes out :credit.

3. Nominal account:All expenses and losses & all incomes and gains.

Eg: bad debts recovery, outstanding liabilities. Rule:

All expenses and losses: Debit.

All Incomes and gains: credit.

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