To understand the different concepts in a better way, we have to understand the differences between that terms or concepts with relevant terms or concepts. You will get to know the main feature or merit of the term/concept which it has unique from their 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 is 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 very basic terms to understand them 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 more Commerce terms and concepts we categorise the many important terms to explain the differences between them. These are shown as follows: