Meaning of Debit and Credit

 The very word 'Debit' is derived from the Latin word 'debitum' which means 'due from that' or 'who owes'. But technically, to debit an account means to write on the left hand side of an account called the debit side. In short, debit refers to the left hand side an account. It increases either assets or the recorded expenditure of the organisation keeping the book. The term Debit is related to the English term 'Debtor'. Debit is written in short form as 'Dr'.

Similarly, the word 'Credit' is derived from the Latin word 'Creditum' or 'Creder' which reveals 'due to that'. But to credit an account means to write on the right hand side of account which is called the 'Credit side'. In short, it is written as Cr. Usually credit side shows sale, income or liability.

Practically, these two terms are the two sides of an account, the left hand side is called the Debit side and the right hand side is called the Credit side.