Define the terms debit and credit. Explain how debits and credits affect the following: assets, liabilities, owner's capital account, revenues and expenses.© BrainMass Inc. brainmass.com June 4, 2020, 2:39 am ad1c9bdddf
A debit is an accounting transaction that increases an account. A credit lowers the balance of an account, because it decreases the account. When an asset is debited, the amount increases. If we debit cash, we increase the cash balance in the bank. If the cash balance is $100 and we debit it for $300, the cash balance is now $400. When we credit cash, the balance declines. A check written out to a supplier would be a debit to accounts payable and a ...
The solution defines debits and credits and fully explains how debits and credits affect the following: assets, liabilities, owner's capital account, revenues and expenses.