Explain dr and cr? Explain ledger and subledger?

Question

Accepted Answer

DR and CR are abbreviations for debit and credit, which are used in accounting to record financial transactions. Ledger is a book that contains all the accounts, while subledger is a subsidiary ledger that provides more detailed information for specific accounts.

DR stands for debit, which represents an increase in assets or a decrease in liabilities or equity.
CR stands for credit, which represents a decrease in assets or an increase in liabilities or equity.
Ledger is a book that contains all the accounts and their balances, serving as the main record of financial transactions.
Subledger is a subsidiary ledger that provides more detailed information for specific accounts, such as accounts receivable or accounts payable.
For example, if a company receives cash from a customer, it would debit the cash account in the ledger and credit the accounts receivable account in the subledger.

Accepted Answer

"Dr" stands for Debit

"Cr" stands for Credit

These terms are used to indicate whether a transaction is Increasing or Decreasing an account balance.

A ledger is used to record all financial transactions and prepare financial statements

Subledgers are used to provide detailed information about specific accounts or groups of accounts.

Explain dr and cr? Explain ledger and subledger?

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