Anonymous
Apr 7
What is the difference between credit and debit on trial balance?
Farm management
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Apr 7
Credit and debit are two sides of the accounting equation and are used to record transactions in a company's financial statements.
In a trial balance, credits and debits are used to show the balance of accounts. Debits are used to record increases in assets and expenses, and decreases in liabilities and revenues. Credits are used to record increases in liabilities and revenues, and decreases in assets and expenses.
The difference between credit and debit on a trial balance is that they represent different types of accounts and have opposite effects on the financial statements. Debits are typically shown on the left side of the trial balance, while credits are shown on the right side. By comparing the total debits and credits on a trial balance, accountants can ensure that the accounting equation remains in balance.
In a trial balance, credits and debits are used to show the balance of accounts. Debits are used to record increases in assets and expenses, and decreases in liabilities and revenues. Credits are used to record increases in liabilities and revenues, and decreases in assets and expenses.
The difference between credit and debit on a trial balance is that they represent different types of accounts and have opposite effects on the financial statements. Debits are typically shown on the left side of the trial balance, while credits are shown on the right side. By comparing the total debits and credits on a trial balance, accountants can ensure that the accounting equation remains in balance.
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