What is mean by credit and debit?

What is mean by credit and debit?

A debit increases asset or expense accounts, and decreases liability, revenue or equity accounts. A credit is always positioned on the right side of an entry. It increases liability, revenue or equity accounts and decreases asset or expense accounts.

What does credit balance mean?

A credit balance on your billing statement is an amount that the card issuer owes you. If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you.

What is meant by credit class 10?

The Credit refers to an agreement under which goods and services, or money is exchanged against a promise to pay later. Another definition of Credit refers to the money given by banks to its customer and the later has to pay it on time. If he fails to pay the same on time, he will be charged by the bank.

What are the three terms of credit?

Terms of credit comprise interest rate, collateral and documentation requirement, and the mode of repayment.

What is Credit What are the main terms of credit?

Interest rate, collateral and documentation requirement and the mode of repayment together comprise what is called the terms of credit. They may vary depending on the nature of the lender and the borrower.