Debit vs. Credit
Main DifferenceDebit and Credit are two terms used mostly in Banks and are associated to money and dealings. These are entries in double entry bookkeeping made in account ledgers in order to keep records of variation occurs as the business transactions take place. Generally, the source account for the transaction is termed as Credit and the destination account is called as Debit. The difference between total debits and total credits within a single account is known as the account's balance. Debit is a sum of money taken from a bank account. Credit is a sum of money placed into a bank account. Debit is an accounting entry. Credit is an accounting entry. In an Asset Account, a Debit increases the balance and a Credit decreases the balance. For liability accounts type, Debit decreased the balance and credit does the opposite. A Debit decreases the balance in Equity Accounts where balance is increased by Credit. Accounts containing a Debit balance will increase the amount when a Debit is added to them but it will reduce after a credit is added; however, it depends on the types of accounts. In Cash sale, cash amount is Debit and the Revenue Account is Credit. The following example will help in differentiating Debit and Credit. Suppose if a factory sells its product to a buyer for cash of $10, it provides a revenue of the same mount to the seller with the same case in the box. The cash will be recorded in increase of cash amount for debit account and an increase of the revenue account with a credit and the entry is Cash=Revenue, Debit-$10, and Credit=$10. On the other hand, the company buys an equipment against #10 on credit. It will be an addition to the existing, fixed assets account with a debit and an increase in the accounts payable account in a credit and the entry will be: Assets=Accounts Payable, Debit=$10, and Credit=$10.

Difference Between Debit and Credit
Debit vs. Credit
Debit means Left or Left Side; Credit account is listed on the Right Side of another account
Debit vs. Credit
General ledger accounts contain sides for both Debit and Credit
Debit vs. Credit
Credit is a sum of money put into a bank account; Debit is a sum of money taken from a bank account
Debit vs. Credit
Debit stands for purchasing with one's own money; Credit is to buy by borrowing money
Debit vs. Credit
Credit is written in the abbreviation term as 'Cr'; Debit is abbreviated as 'Dr'
Debitnoun
In bookkeeping, an entry in the left hand column of an account.
A cash sale is recorded as debit on the cash account and as credit on the sales account.Creditverb
(transitive) To believe; to put credence in.
Someone said there were over 100,000 people there, but I can't credit that.Debitnoun
A sum of money taken out of a bank account. Thus called, because in bank's bookkeeping a cash withdrawal diminishes the amount of money held on the account, i.e. bank's debt to the customer.
Creditverb
To add to an account (confer debit.)
Credit accounts receivable with the amount of the invoice.For the payroll period credit employees' tips to their wages paid account and debit their minimum wage payable account.The full amount of the purchase has been credited to your account.Debitverb
To make an entry on the debit side of an account.
Creditverb
(transitive) To acknowledge the contribution of.
I credit the town council with restoring the shopping district.Credit the point guard with another assist.Debitverb
To record a receivable in the bookkeeping.
We shall debit your account for the amount of the purchase.We shall debit the amount of your purchase to your account.''Creditverb
(transitive) To bring honour or repute upon; to do credit to; to raise the estimation of.
Debitadjective
of or relating to process of taking money from an account
Creditnoun
Reliance on the truth of something said or done; faith; trust.
Debitadjective
of or relating to the debit card function of a debit card rather than its often available credit card function
Creditnoun
(uncountable) Recognition and respect.
I give you credit for owning up to your mistake.He arrived five minutes late, but to his credit he did work an extra ten minutes at the end of his shift.Debitnoun
an accounting entry acknowledging sums that are owing
Creditnoun
(countable) Acknowledgement of a contribution, especially in the performing arts.
She received a singing credit in last year's operetta.Debitverb
enter as debit
Creditnoun
Written titles and other information about the TV program or movie shown at the beginning and/or end of the TV program or movie.
They kissed, and then the credits rolled.Creditnoun
A privilege of delayed payment extended to a buyer or borrower on the seller's or lender's belief that what is given will be repaid.
In view of your payment record, we are happy to extend further credit to you.Creditnoun
The time given for payment for something sold on trust.
a long credit or a short creditCreditnoun
A person's credit rating or creditworthiness, as represented by their history of borrowing and repayment (or non payment).
What do you mean my credit is no good?Creditnoun
(accounting) An addition to certain accounts.
Creditnoun
(tax accounting) A reduction in taxes owed, or a refund for excess taxes paid.
Didn't you know that the IRS will refund any excess payroll taxes that you paid if you use the 45(B) general business credit?Creditnoun
A source of value, distinction or honour.
That engineer is a credit to the team.Creditnoun
An arbitrary unit of value, used in many token economies.
To repair your star cruiser will cost 100,000 credits.Would you like to play? I put in a dollar and I've got two credits left.Creditnoun
(uncountable) Recognition for having taken a course (class).
If you do not come to class, you will not get credit for the class, regardless of how well you do on the final.Creditnoun
(countable) A course credit, a credit hour – used as measure if enough courses have been taken for graduation.
Dude, I just need 3 more credits to graduate – I can take socio-linguistics of Swahili if I want.Creditnoun
approval;
give her recognition for tryinghe was given credit for his workgive her credit for tryingthe credits were given at the end of the filmCreditnoun
money available for a client to borrow
Creditnoun
an accounting entry acknowledging income or capital items
Creditnoun
used in the phrase `to your credit' in order to indicate an achievement deserving praise;
she already had several performances to her creditCreditnoun
arrangement for deferred payment for goods and services
Creditnoun
recognition by a college or university that a course of studies has been successfully completed; typically measured in semester hours
Creditnoun
a short note recognizing a source of information or of a quoted passage;
the student's essay failed to list several important citationsthe acknowledgments are usually printed at the front of a bookthe article includes mention of similar clinical casesCreditnoun
an entry on a list of persons who contributed to a film or written work
Creditverb
give someone credit for something;
We credited her for saving our jobsCreditverb
give credit for;
She was not properly credited in the programCreditverb
accounting: enter as credit;
We credit your account with $100Creditverb
have trust in; trust in the truth or veracity of
Comparison Chart
Credit | Debit |
Credit is basically a trust, allowing one party to provide money or resources in place of money to another party | A Debit is an accounting entry, recorded against one account. |
Function | |
Provision of money is not a compulsion in Credit and the idea applied in barter economies, basing on the direct exchange of goods and services. | A Debit increases the balance in Asset Accounts, while decreases in Liability Accounts and in Equity Accounts |
Usage | |
Used by businessmen | Used by everyone |
What is Credit?
Credit is basically a trust, allowing one party to provide money or resources in place of money to another party where the second party does not reimburse the former right away, but rather arrange either to repay or return the received resources later on. Provision of money is not a compulsion in Credit and the idea applied in barter economies, basing on the direct exchange of goods and services. Types of Credit includes banks, commerce, consumer credit, investment credit, public credit, real estate credit etc. When it is used for commercial trading, it terms as ‘trade credit’. Credit is usually not for financially weak parties, or companies as organizations only offer it to such clients whom they know are financially strong.
What is Debit?
A Debit is an accounting entry, recorded against one account. A Debit increases the balance in Asset Accounts, while decreases in Liability Accounts and in Equity Accounts. Debiting an account stands for entering an amount on the left side of the account. All the asset accounts hail in Debit and are considered Left Side. The Debit accounts have debit balances. When debits exceed credits, the account’s balance becomes Debit but when credits exceed debits, the account gets Credit balance.