in dual entry system, under any transaction, there are two accounts got impacted. To separate it, and proper accounting it differentiates under Dr and Cr. The basic difference is Debit stands for the increase in expense, Asset and Credit stand for the increase in Liability and Profits. And vice versa when Asset and Expenses decreases, it credit same as when Liabilities and Profit decrease it Debit.
Written on Nov. 19, 2017, 5:16 p.m.