Debits and credits (Abbreviated Dr and Cr, respectively) are entries made in account ledgers to record changes in value resulting from business transactions. Generally speaking, the source account for the transaction is credited (that is, an entry is made on the right side of the account's ledger) and the destination account is debited (that is, an entry is made on the left side). Total debits must equal total credits for each transaction; individual transactions may require multiple debit and credit entries to record.
The difference between the total debits and total credits in a single account is the account's balance. If debits exceed credits, the account has a debit balance; if credits exceed debits, the account has a credit balance. For the company as a whole, the totals of debit balances and credit balances must be equal as shown in the trial balance report, otherwise an error has occurred.
Debits are the opposite of credits! In other words they are meaningless words without each other! It’s like trying to explain the word positive without using the word negative or plus without using the word minus, or alkaline without acid!
The Accounting and Payroll Administrator program at ABM College offers students comprehensive insight into the accounting cycle. From payroll fundamentals and compliance legislation to financial accounting, this program provides students with the necessary skill set to keep records of accounts, maintain a complete set of books, and verify financial transactions. In addition to the fundamentals of accounting and payroll practices, students also focus on business writing skills, student success strategies, and career and employment strategies within the financial industry. At ABM College we ensure that our program learning outcomes reflect current industry trends, and that our graduates enter the workforce ready to excel in their new career. Enroll in the Accounting and Payroll program at ABM College today!