Debit and credit meaning: In practice

In practice, the term debit is denoted by “Dr” and the term credit is denoted by “Cr”. In the rest of this discussion, we shall use the terms debit and credit rather than left and right. When a financial transaction occurs, it affects at least two accounts. Everything you need to know about Debit and Credit. The Rules of Debit and Credit, differences, and Practical Examples and much more. Learn what is debit and credit in accounting, how to record transactions, and the golden rules of debit and credit. See practical examples of debit and credit entries for different accounts and journal entries. When is a Debit and Credit used? Double entry bookkeeping uses the terms Debit and Credit. They refer to entries made in accounts to reflect the transactions of a business. The terms are often abbreviated to DR which originates from the Latin ‘Debere’ meaning to owe and CR from the Latin ‘Credere’ meaning to believe. Do not try to read anything more into the terms other than debit means on the left hand side and credit means on the right hand side of the accounting equation.