What is the exact meaning of debit and credit in accounting?
The fundamental concept of debit and credit is simple, yet confusing. To most ordinary people (accountants don’t count) with a checking account at a bank, they are used to hearing debit and credit. That is the point of confusion I think. When you go make a deposit of Rs.100 into your checking account, the teller tells you that she credited your account with with Rs.100. She also tells you that because you had a bounce check, they had to debit your account for Rs.25. That’s how most people grow up understanding debit and credit. DEBIT is when they LOSE money and CREDIT is when they GAIN money (see bank reference above). That kind of thinking is what confuse people when they first try to learn accounting. Let’s go back to the bank examples above. When the teller tells you that she credited your account for Rs. 100 and debited Rs. 20 for your bounce check fee, she’s telling you that from her (the bank’s perspective). Let’s look at it from the bank’s perspective. To the bank, your checking
