[AccessD] Debits and Credits

I knew I was in for a rough time when the person I had hired to keep the
books at the company where I worked balked at my instruction to post a
bank deposit as a debit to the cash account.  "Deposits are ALWAYS
credits!" was her response.  I insisted, and eventually prevailed
despite her resistance, but she didn't last long.  I still chuckle to
myself whenever I remember that scene!

Don



-----Original Message-----
From: accessd-bounces at databaseadvisors.com
[mailto:accessd-bounces at databaseadvisors.com] On Behalf Of Charlotte
Foust
Sent: Friday, May 28, 2004 9:35 AM
To: Access Developers discussion and problem solving
Subject: RE: [AccessD] Debits and Credits


I know the hardest thing to explain to non-accountants is the simple
rule that debits are on the left and credits are on the right!  When I
was a banker, it was even more confusing because to a bank, credits
(loans) are assets and debits (deposits) are liabilities, just the
opposite of to the customer. <G>

Charlotte Foust

-----Original Message-----
From: Michael R Mattys [mailto:michael.mattys at adelphia.net] 
Sent: Friday, May 28, 2004 8:20 AM
To: Access Developers discussion and problem solving
Subject: Re: [AccessD] Debits and Credits


----- Original Message ----- 
From: "Arthur Fuller" <artful at rogers.com>
To: "'Access Developers discussion and problem solving'"
<accessd at databaseadvisors.com>
Sent: Friday, May 28, 2004 11:39 AM
Subject: [AccessD] Debits and Credits


> >> There is nothing to indicate dr or cr.
>
> Does anyone happen to know the origin of "dr"? It's always puzzled me 
> -- an unlikely abbreviation of "debit". Not important, just wondering.
>
> And incidentally, why are terrorists always credited with their acts, 
> rather than debited?
>
> Arthur

Debit and Credit come from Latin words Debitir and Creditir meaning left
and right, respectively.

They do not mean increase or decrease, rather it is the act of making an
accounting entry on the left side or the right side. If they were
reversed, it wouldn't matter to an accountant using the double-entry
system.

Assets = Liabilities + Owner's Equity
dr|cr    =     dr|cr    +        dr|cr

If the left side of an account is greater than the right side, it has a
debit balance. If the right is greater, it is a credit balance.


----

Michael R. Mattys
Mattys MapLib for Microsoft MapPoint http://www.mattysconsulting.com

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