debet or credit: BONGDATV

The main differences between debit and credit accounting are their purpose and placement. Debits increase asset and expense accounts while decreasing liability, revenue, and equity accounts. On the other hand, credits decrease asset and expense accounts while increasing liability, revenue, and equity accounts.

Key Differences Between Debit and Credit in Accounting. An entry made in an account on the left side is the debit entry or debit. Whereas, when an entry made is on the right side of the account is credit entry or credit. The act of recording entries on the left side is known as debiting the account.

Debits and credits help track the money flow, with debits representing incoming funds and credits representing outgoing funds, forming the basis of double-entry accounting.

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