debit and credit - these are two terms that are specific to the accountant.Moreover, the study of accounting science is just beginning to explain the fundamentals of double-entry accounting.Debit - a column on the left, and the credit - Right.At first it looks very simple, but in reality is much more complex.From university accounting course students usually remember only that debit - a debt that we will soon return.
However, in real life is that there are passive accounts, where all is reflected quite the opposite.And we have not even begun to talk about active-passive accounts.Therefore, one can not say that credit - It is the duty of our company to our partners.
If we mean severely active account, the reflection of their business operations on the left side of the recorded property rights of the company or its costs.With regard to passive accounts, debit here - is the company's revenue or costs.Therefore, there is no point in talking about debit and credit postings separately from the direct account, which affects the wiring.
If the sum on the right side of the balance more than the left, in the case of an active-passive and active accounts, it means that the value of the property is reduced organization.On the other hand, the credit balance of the account can only be passive with increasing property or debts of the enterprise to its counterparties.
Let's understand that represent these concepts of accounting at general example, even a simple man in the street understands.Imagine that the movement of the credit to the debit - this is your way from one point to another.Suppose we scored 5 liters of water from the well.In this case, the bucket - is debited.Credit - a well, the water volume which decreased by 5 liters.
Other terms of accounting are fairly easy to understand.Opening balance - a balance for a specific account of the beginning of the reporting period (year, month, quarter), and the final - at the end of this period.Some scholars give different names to these terms: "the balance of incoming" and "outgoing balance."
Finally I would like to tell a story about a young accountant who was able to succeed in life.This story has now become a professional anecdote.So, I got a graduate of one of the highest economic institutions in the accounting office.He was a good specialist, and his case quickly went up the hill.But he had a strange thing, and one in which none of his colleagues could not understand.Every day when he came to work, he unlocked the top drawer of your desk and looked there, and then began his daily affairs.Passed year after year, and it has become a chief accountant, he got his own office, but the habit of working in such a way to start the day refused.Many curious colleagues tried to see what was in the drawer, but he was always locked with a key.And here is our accountant retired and then cracking the top drawer and colleagues found that there lay one single note on which was written in large letters: "Credit - right DEBIT - to the left."