Definition of debit and credit bookkeeping method

The basic courses of accounting begin with borrowers and lenders. Debit is on the left side of the account book and credit is on the right side of the account book. Here, we should keep in mind an unchangeable law: "Debit = Credit", in other words, any transaction must be registered on both sides of the account book at the same time.

principle

(1) When assets increase, it is recorded on the left; When assets decrease, record it on the right.

(2) When the liabilities increase, record it on the right; When the debt decreases, record it on the left.

The debit and credit bookkeeping method is a double bookkeeping method with debit and credit as the bookkeeping symbol.

The basic deposit account structure of debit and credit bookkeeping method is divided into two sides, the left is called debit and the right is called credit. Generally speaking, the economic business recorded in the debit account is called "debit account"; The economic business credited to an account is called "credit account".

As for which party to record the increase of the amount and which party to record the decrease of the amount, it depends on the nature of the account, and the structure of different accounts is different.

Applicable business of debit and credit bookkeeping method

1. Capital flows into the business of the enterprise.

That is, assets, liabilities and owners' equity increase at the same time. The increase of assets is recorded in the "debit" of related subjects, and the increase of liabilities and owners' equity is recorded in the "credit" of related subjects.

2. Business in which funds flow within the enterprise.

That is, the increase or decrease between assets, income and expenses or within asset elements. The increase of assets and expenses, the decrease of income, the' debit' of relevant subjects, the increase of income and the decrease of assets and expenses, the' credit' of relevant subjects.

3. Equity conversion business.

That is to say, there is an increase or decrease between liabilities, owners' equity and profits or within an element. Liabilities, increase in owner's equity and increase in profit are recorded in the "credit" of related subjects, while liabilities, decrease in owner's equity and decrease in profit are recorded in the "debit" of related subjects.

4. Withdrawal of funds from enterprise business.

That is, assets, liabilities and owners' equity decrease at the same time. The decrease of assets is recorded in relevant accounts, while the decrease of liabilities and owners' equity is recorded in relevant accounts. It can be seen that each type of business should debit related accounts and credit other accounts at the same time, and the amount credited to both parties is equal.