Define debit and credit and explain how assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends are affected by (increased or decreased) by debits and by credits.
What is a Debit?
In simple terms debit means receiving the benefit from various sources like receiving any assets and services.
What is a Credit?
The same benefit is given by you to some one or any organisation is called as credit.
So receiving and giving the benefit is called debit and credit respectively.
So these are all debited. And the same time if it is decreased our benefit has gone down. So it is credited
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