Accounting Basics – Introduction to Debit and Credit

For a common man who didn’t ever study formal accounting, the terms credit and debit can be quite confusing. When depositing X money in your bank account, the teller tells you,» You account is credited by X dollars,» but while you withdraw money Y from your account, the teller informs you,» Your account is debited with Y dollars.» It is important to understand the difference between these two, as everybody today makes use of credit cards and debit machines.