To understand any concept in a better way we can understand the differences between that terms or concepts with relevant terms or concepts. You will get to know that the main feature or merit terms or concepts which it has unique from its similar terms.
In simple language, If you are confused between two similar terms of any subject, you can clear it by knowing the actual differences between them.
If you are confused between Debit and Credit, that how to deal with them differently and where to use the word debit and in which situation you have to use the word Credit.
Then if you get to know about the actual differences between them then you will never get confused while using these terms or concepts.
Please check the following differences between these terms to understand better: –
|Basis of Difference||Debit||Credit|
|Meaning||The Debit means adding(+) some value into the something account||Credit means subtracting(-) some value into something account.|
|Side||The left side of the ledger account||The right side of the ledger account.|
|Impact on Assets||Increase||Decrease|
|Impact on Liabilities||Decrease||Increase|
|Impact on Expenses or losses||Increase||Decrease|
|Impact on Income or Gains||Decrease||Increase|
|Impact on capital||Decrease||Increase|
To help you to understand the more Commerce terms and concepts we categorise the many important terms to explain the differences between them. These are shown as the following basis: –
- 1st on the basis of important terms used in financial accounting(Live)
- 2nd on the basis of important terms used in Cost Accounting(Working)
- 3rd on the basis of important terms used in Management Accounting(Working)
- 4th on the basis of important terms used in Micro Economics(Live)
- 5th on the basis of important terms used in Macro Economics(Working)
- 6th on the basis of important terms used in Goods and Services Tax(Working)
- 7th on the basis of important terms used in Income Tax(Working)
- 8th on the basis of important terms used in Business Studies(Live)