by james
(accra-ghana)
What is debit and credit?
Answer
In accounting, accounts are set up to look like a “T”. In a “T” account – amounts entered on the debit side (left hand side of the T account) are called debits and amounts on the credit side (right-hand side) are called credits.
To debit means to make an entity in the left-hand side of an account and To credit means to make an entry in the right-hand side of an account.
Important point! The words debit and credit have no other meaning in accounting. Most people think a debit and credit as a positive or a negative. They are not either.
See this page on basic accounting for more on debits and credits.
Join in and write your own page! It's easy to do. How? Simply click here to return to Accounting.
If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.
Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)