Let's understand Debit vs Credit in Accounting, their meaning, key differences in simple and easy steps using practical illustrations. A simple, visual guide to debits and credits and double-entry accounting. Beginners welcome. Learn the basic concepts and rules of debit and credit in accounting, with examples and comparison chart. Debit indicates the destination of benefit, while credit indicates the source of benefit in a transaction. When is a Debit and Credit used? Double entry bookkeeping uses the terms Debit and Credit. They refer to entries made in accounts to reflect the transactions of a business. The terms are often abbreviated to DR which originates from the Latin ‘Debere’ meaning to owe and CR from the Latin ‘Credere’ meaning to believe. Do not try to read anything more into the terms other than debit means on the left hand side and credit means on the right hand side of the accounting equation.
