Difference Between Credit and Debit in Financial Accounting (Accounting for Beginners)

WORLD KNOWLEDGE 2017-10-20

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An increase to a liability or to an equity account is a credit Assets = Liabilities + Equity. on the other hand a decrease to an asset account is a credit. A decrease to a liability or equity account is a debit.Debits and credits occur at the same time in every financial transaction in double-entry bookkeeping.

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