An accounting expression starts with 'Debit' and 'Credit'.

You might be wondering what is debit

and credit? Also, this is intriguing enough why is it that if we debit some accounts, it makes
them go up while when some other sets of accounts get debited, it goes down?  More
importantly, how is this important for any business? In a nutshell, recording all the money
flowing into the account is the basis of debit while recording all the money flowing out of the
account is the basis of credit. In this context, we will delve deep into the discussion of debit and
credit in accounting, know its effect in the accounting transaction of a

Debit and Credit in Accounting

Debit and Credit are the two accounting tools. Business transactions are to be recorded and
hence, two accounts, which are debit and credit, get facilitated. These are the events that carry
a monetary impact on the financial system. While keeping an account of this transaction, these
accounting tools, debit, and credit, come into play. Whenever accounting transactions take
place, it majorly affects these two accounts. business, know the rules engaging debit and credit,
journal entries in effect to it. 

In balance' is such an accounting transaction where the total of the debit and credit matches or
is equal. In contrast, if the debt is not equal to the credit, creating a financial statement will be a
problem. The business transaction is separated into accounts while doing the bookkeeping.

tThe commonly affected accounts are- 

Assets 
Expenses 
Liabilities 
Equity 
Revenue
Different Effects of Debit and Credit are as Follows
 In effect, a debit increases an expense account in the income statement and a credit decreases
it. Liabilities, revenues, and equity accounts have a natural credit balance. If the debit is applied to any
of these accounts, the account balance will be decreased.

Difference between Debit and Credit It is quite amusing that debits and credits are equal yet
opposite entries. A debit increases an account. Now to increase that particular account, we simply credit
it. However, we use this opposite treatment to get the desired result. 

A left-sided entry is headed with debit. It increases an asset or expenses account or decreases
equity liability or revenue accounts. For example, ‘Purchase of a new computer’. Here, the asset gained
(computer) is to be notified on the left side of the asset account. Whilst the right side is marked by the
credit entry, it either increases equity, liability or revenue accounts or decreases an asset or expense
account. In the ‘Purchase of a new computer’, the expense (payment for the computer) is credited on
the right side of this expense account. Given below is a comparison chart to have a thorough
understanding of the difference between the concept of debit and credit.