In accounting, what is a debit and credit?

Difference between debit and credit in accounting

Real account(Real accounts constitute all assets like Building, Land, Road, Machinery, Plants, Constructions, Furniture and other Equipments)-,DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUTWhen they are purchased you debit the respective account with the amount.

When it is sold or removed, you credit the account with its value.


Personal account( Personal accounts constitute the accounts of an owner, partners, shareholders (Capital and Drawings Account), customers and suppliers (Debtor or Creditor) etc),DEBIT THE RECEIVER AND CREDIT THE GIVERWhen a payment is made to somebody, you debit the receiver of that payment and credit Cash or Bank as money is paid from cash or by means of cheque.

When money or cheques are received, you credit the person who is paying you and you debit the cash or bank,3.

Nominal account (Nominal accounts constitute all expenses and income accounts and also profit or loss),DEBIT ALL EXPENSES AND LOSSESCredit all incomes and gains.

You debit the expenditure account whenever some expenditure is incurred and credit the income account whenever income is received.

Income accounts include interest received, rent received, and profit or surplus, etc.

Difference between debit and credit in journal entry

According to the principle of accounting,Credit means what goes on,Debit means what comes in,When stock is sold cash comes to the firm.

The journal entry is debit cash and credit stock account,When the building is sold, cash is credited into the bank account.

The journal entry is debit bank account and credit building account,Debit and credit are the basic principles of double entry book keeping.

In India, for the purpose of accounting at all levels, the system of double entry book keeping is adopted

Difference between debit and Credit card in Urdu

As an Indian when you arrive and start living you will find some changes in the way of lifeu2026some you will like some you may not depending on how you lived your life in India.

My advice will be to follow the laws of the land, and for social norms observe and adapt.

,I will list some -,Traffic, vehicle or human , follows rules.

Only ambulance and police vehicles have priority on road, and they have absolute priority.

Its difficult to get a license here if you have Indian habits.

You will have to unlearn a lot of things.

But once you do get and start driving, its much better than in india.

But if you are in central London, you are better off without driving.

,Public transport is among the best in the world.

If you live and work anywhere in London, you will not crib at least about commute (if you used to do that in india),London is costly.

Of course it is one of the top metropolis in the world.

But it is not you-cannot-survive costly.

Everybody survives and does decently.

The difference in cost between the top end of things and middle or lower end is not so marked as compared to Indian metros.

For eg.

a sandwich on the rail station will not differ as much in cost from its brother in the topmost central London restaurant as it would in India.

,If you do not mentally convert GBP into Rupees for every transaction, you will realise after a while that you are able to live a better life in London as compared to India (given the ratio of your salary to the average salary of the country is similar ),There is a lot more equality in the society as compared to India.

If you are someone who is used to maids, servants and other errand helps you will find some difficulty in the life initially.

There is no such job as a Fuel tank filler, apartment security guard, cooking gas cylinder supplier, drinking water can supplier, personal car cleaner, or a liftman.

Having a domestic help will be expensive.

You cannot ( and should not) treat or consider the plumber/electrician/pizza delivery guy/office housekeeping personnel/sanitation workers etc any lower than yourself.

And in most cases you will have to book an appointment for any of these services and pay a fixed hourly rate.

Most brits do a lot of DIY (do it yourself) stuff.

Not to save money, but that is the general practice.

,Unlike India, doing a transaction with a credit/debit card over phone is perfectly normal.

Donu2019t be alarmed if the person on phone asks for your CVV number.

Its normal to share it and there is very little chance of fraud.

,Healthcare and Public education is free (well technically you do pay a monthly amount to the govt from your salary for all these benefits) .

But you donu2019t have to pay a yearly or monthly fees for school or for every visit to the GP ( general practitioner = doctor) .

Unlike India.

,Most people ( roughly around 70u201375 % ) send their kids to public schools ( govt school).

The quality of public schools in London is a lot better than india.

Private schools are a costly affair, and not a normal way of life, unlike India.

,People in general are satisfied and do not become preposterous according to their designation or power.

A VP in a company and an average employee may be driving similar cars, drinking in the same pub, travelling the same tube or going to same place for holidays.

,Coming from India, you will need to get used to living in smaller houses.

My house here is smaller than the house I used to live in, with my parents in a very small town in India, 20 years ago.

Also new construction is very limited,Unlike India, there are hardly any housing societies in London with security guards, gardens, swimming pools, big gates, underground car parks or the likes.

,London (or for that matter UK) is the least u2018foreignu2019 country you will come across if you are coming from india, compared to Americas, conti.

Europe or Australia.

There are many indians, and a lot of the ways of the society and the life are similar to India ( because most of Indian rules are derived from Britain),English is spoken as good as French, German, Lebanese, Hindi, Marathi, Punjabi, Gujarati, Urdu, Arabic, Swahilli, Mandarin and what not.

London is not UK capital, it is the world capital.

,Weather in London will be colder than most parts of India.

and will stay that way for most part of the year.

If you are coming from the north of india, you will find it ok.

If from south or central parts then you will struggle in the first season.

,Public festivities and social gatherings are mostly organized by non brit communities .

For eg there are many places in London you can celebrate holi, diwali, Eid and Navdurga etc.

They are supported and accepted by the government.

,Londonu2019s night life is amazing and very secure for ladies and families.

During the day London is beautiful and charming.

Royal in some parts still.

Credit card meaning

The 16 digit number of a payment card is made up of two parts.

The first 6 is the Issuer Identification Number, also referred to as the Bank Identification Number.

This tells you what bank issued the payment card, the payment card type (debit, credit, prepaid) and the country of origin of the card issuer.

,You can play around with BIN look ups here: Free BIN/IIN Lookup Web ServiceThe remaining 10 digits are the unique account number of that particular cardholder.

,Theres also the CVV number which is the 3 or 4 digit code, usually on the back of the card.

This is a security code of sorts.

Ideally the only party that should know your CVV number besides you is the card issuer (so they can verify that there is a match).

,Of course theres also the expiration date, which is another set of numbers on the card.

Usually its in a MM/YY format.

So a card expiring in January 2019 would read 01/19.

Similarities between credit card and debit card

The question was - How do debit and credit cards differ?A credit card lets you make purchases against your credit line, while requiring minimum payments and charging you interest.

,A debit card u2018debitu2019 (or deducts) money directly from your account - usually checking, sometimes savings.

Even when a debit card u2018uses the credit card network,u2019 the money comes directly out of your account.

Whether you use a pin or the credit card network whose logo is on your debit card, you are spending your money when you use a debit card.

Your limit is what you have available to spend - you donu2019t u2018run up chargesu2019 on a debit card - you empty your own account.

,One caution - Credit transactions, such as checking into a hotel, place a hold on a portion of your credit.

You probably donu2019t care - thereu2019s no interest charge for it.

It just lowers the amount you can charge.

,When you use a debit card for that transaction, it is your own cash that is on hold - and it can take up to a week to come off.

Which means that you are prevented from using your own cash because u2018the systemu2019 was designed to work against your credit.

It can be very distressing.

There are signs warning about that now in many hotels at check in.