debit vs credit accounting

Here’s a clear and simple explanation of Debit vs Credit in Accounting 👇

⚖️ Basic Concept

In accounting, every transaction has two sides —
1️⃣ Debit (Dr)
2️⃣ Credit (Cr)

📘 This is called the Double Entry System, meaning:

Every debit has an equal and opposite credit.

🔹 Meaning
Term Meaning Effect
Debit (Dr) What comes into the business or increases assets/expenses Left side of accounts
Credit (Cr) What goes out of the business or increases liabilities/income Right side of accounts
🔹 Golden Rules of Accounting
Type of Account Debit Credit
Personal Account (people or firms) Receiver Giver
Real Account (assets, property) What comes in What goes out
Nominal Account (income, expenses) All expenses/losses All incomes/gains
🔹 Example 1: Cash Sale

You sold goods for ₹5,000 in cash.

Account Debit/Credit Amount
Cash A/c Dr ₹5,000
Sales A/c Cr ₹5,000

🧾 Explanation:
Cash comes in → Debit
Sales (income) increases → Credit

🔹 Example 2: Purchase of Furniture for Cash
Account Debit/Credit Amount
Furniture A/c Dr ₹10,000
Cash A/c Cr ₹10,000

🪑 Explanation:
Furniture (asset) comes in → Debit
Cash goes out → Credit

🔹 Example 3: Owner Withdraws Money (Drawings)
Account Debit/Credit Amount
Drawings A/c Dr ₹2,000
Cash A/c Cr ₹2,000

💡 Explanation:
Drawings (personal use) → Debit
Cash (goes out) → Credit

🔹 Quick Summary Table
Transaction Type Debit Credit
Asset increases ✅ ❌
Asset decreases ❌ ✅
Liability increases ❌ ✅
Liability decreases ✅ ❌
Expense increases ✅ ❌
Income increases ❌ ✅