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  • INTERVIEW QUESTIONS ACCOUNTS ACCOUNTS PAYABLE DETAILS
    Question :
    What is debit and credit from the banks point of view ?

    Category Accounts Payable Interview Questions
    Rating (0.3) By 1014 users
    Added on 7/21/2006
    Views 3390
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    Answers:

    Credit what comes in

    Debit what goes out



    "debit what comes in"
    "credit what goes out"
    this is the golden rule



    Posted by: ravindra    

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    In Banks point of view debit means u have deposited money in the bank . and credit means u have withdraw money from the banks.
    in other word we can say that if debit bank balances shows in bank statement this means it is the unfavorable condition for the company and credit balance means it is the favorable condition for the company.



    Posted by: manjeet    

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    From banks point of view, what comes in business is debit and what goes out from business is credit...



    Posted by: Nitin Rajdev    

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    Debit what comes in &

    Credit what goes out

    from the Bank point of view



    Posted by: kathiresan    

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    Credit what comes in

    Debit what goes out



    Posted by: dheeraj gupta    

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    1. Debit to receiver
    Credit to giver

    2. Debit what comes in
    Credit what goes out

    3. Debit All Exp /Loss
    Credit Income/Gain



    Posted by: manjunath    

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    debit balance of our books of a/c will be the credit balance of bank a/c. and the credit balance of our books of a/c will be debit balance in the books of a/c of bank



    Posted by: kiran    

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    debit what comes in
    credit what goes out



    Posted by: shireesha    

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    Debit means payment
    Credit means receipt



    Posted by: Tapojit    

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    credit means , what comes in , debit means what goes out



    Posted by: panchami H.R    

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    credit means , what comes in , debit means what goes out



    Posted by: panchami H.R    

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    If Bank is the receiver Bank account Debit
    If Bank is the giver Bank account credit



    Posted by: RAM RAI    

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    In the view of banks debit withdraws,credit deposits.



    Posted by: sandhya    

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    Debit for a bank means assets/receivables

    Credit for a bank means liability/payable



    Posted by: Mahesh    

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    in the books of bank debit means receivable & credit means payable



    Posted by: narendra    

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    From Bankers point of view Debit is All Withdrawals by the customer, Bank charges and service tax on certain services rendered by bank and Credit is all Deposits by the customer, Interest on the favorable balance for a defined period by the bank. In other words for the banker Debit is decrease in balance and Credit is increase in the balance of the account



    Posted by: kamala    

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    in the point of bank
    credit is incoming and
    debit is outgoing of money
    u will see in passbook



    Posted by: praveen    

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    In Bank point of view,

    Debit all Loans and advances and Credit all about Deposits!



    Posted by: Naveen Kumar    

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    ALL DEPOSITS ARE LIABILITY TO THE BANK AND ALL PAYABLE ARE EXPENDITURE TO BANK. IT MEANS OUR DEPOSITS (SUCH AS SB A/C. C.A. A/C., RECURRING DEPOSITS ETC., ARE PAYABLE TO DEPOSITORS WHICH LIABLE TO THE BANK (CREDIT) AND PAYMENTS SUCH AS INTEREST ARE REPAYING OF BALANCES (WITHDRAWALS OF CUSTOMERS) ARE EXPENDITURE TO THE BANK (DEBIT)



    Posted by: K.V.S.SUBRAHMANYAM    

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    credit-what comes in
    debit what goes out



    Posted by: b.nivethika    

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    Double entry principle
    debit the giver
    credit the receiver



    Posted by: tayo    

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    As Bank is a personal account..so in this the the golden rule is Debit what comes in and Credit what goes out.That is when Bank is receiving the cash than Bank A/C will be Debited and Vice Versa.



    Posted by: vsoniyak    

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    debit is comes in
    &
    credit is goes out.
    this is golden rule of cash book.
    in 11 the class..
    i remembered it.



    Posted by: deepak singh    

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    Debit What Comes In (e.g cash deposit, Bank charges)
    Credit what Goes Out (Cash withdrawal by customer, Rent paid)



    Posted by: Wagh Ramesh    

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    debit receiver and credit the given



    Posted by: md sameer    

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    from bank point of view the debit means that bank receive from you any thing(decrease in balance) and credit means increase in your balance.



    Posted by: Sir Anjam Khan    

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    From Bank the entry while depositing money by a customer will be Cash a/c ...Dr
    To Customer Name.

    Hence the customer's account will show a credit balance if there is money.



    Posted by: simi    

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    in the point of bank
    credit is incoming and
    debit is outgoing of money



    Posted by: Pallavi    

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    Debit what comes in
    Credit what goes out

    bank always credit our a/c whenever we deposit any amount because we are creditor of bank & bank has to pay our money in future



    Posted by: santosh    

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    no



    Posted by: palakvjain    

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    double entry Principe
    debit what comes in
    credit what goes out
    debit the receiver
    credit the giver
    all/exp.&loss. debit
    all income&gain credit



    Posted by: vivek parihar    

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    debit the rec & credit the giver.
    debit what cums in & credit what goes out.
    debit all exp&losses & credit all income&gains.



    Posted by: Raghuram    

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    Debit means negative balance.
    Credit means positive balance,for point of bank.



    Posted by: Hemant Kumar Roy    

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    For bank Point of view

    Debit - Withdrawal Amt
    Credit- Deposit Amt



    Posted by: Naresh Chavan    

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    In Banks point of view debit means u have deposited money in the bank . and credit means u have withdraw money from the banks.
    in other word we can say that if debit bank balances shows in bank statement this means it is the unfavorable condition for the company and credit balance means it is the favorable condition for the company



    Posted by: Lingagoud    

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    The rules of Debit and Credit are same in all occasions. The general rule is the Receiver will be Debited and the Giver will be credited. Whenever we make deposits we will debit the Bank why because he is receiving with a view to act as custodian of our money. When ever require funds we will credit the Banker to the actual balance with our Banker or we became debtor to the Bankers.



    Posted by: Satyanarayana Raju    

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    As and when the balance in the account decreases it will be a debit and if the balance increases it will be a credit. This scenario is when we are talking about a individual bank account.
    If we taking only the bank then the deposits, service charges etc will be debit as the amount (balance) increases. Withdrawls would be a credit as the amount (balnce) will decrease.



    Posted by: Anupama Sarat    

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    sales is also called as turnover



    Posted by: sagar    

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    from the bank point of view bankers debit the what goes out. credit the what comes in firm



    Posted by: kamal    

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    Debit means negative balance.
    Credit means positive balance,for point of bank



    Posted by: chinu    

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    In general we categorise debit and credit based on different accounting types likewise personal, real and nominal account. But when it comes to bank perspective, debit indicates withdrawls and credit indicates deposits which the customers maintain their accounts with the banks.



    Posted by: parveen    

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    Debit what comes in ,
    Credit what goes out



    Regards,
    nicku



    Posted by: nicku    

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    Dr. whats come
    and
    cr. whats goes out.



    Posted by: Narendra Kumar chauhan    

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    any banker have seen this qustion pls put the detailed answer.



    Posted by: ummrt    

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    dr. means bank payment
    cr. means bank receipt



    Posted by: HARSHA    

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    Bank point of view Debit means received money from customers.
    Cerdit Means pay amount demand by customer.



    Posted by: AMJAD SHAIK    

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    according to accounting principles the terms debit and credit plays very dominant role.The term "Debit" means what comes in and "Credit" means what goes out from the organizations.



    Posted by: sk.jabi    

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    cash is taken by bank bank a/c should be debited,cash going from the bank bank a/c should be credited



    Posted by: srilatha    

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    Normally from business poit of view
    debit and credit means... is different for different accounts for ex,
    for personal a/c.
    debit the receiver
    credit the giver.
    for real a/c.
    debit what comes in.
    credot what goes out.
    for nominal a/c,
    debit expenses
    credit income.

    so bank also follow the same rule.. but most of accountant thought that bank does it reverse i.e..,
    debit the giver
    credit the receiver,
    but its not currect as the bank maintai the same rule. why it looks like reverse because its maintains customers account in their bank and has to repay on demond.
    thats why it credited coustomer account on deposit,and debited coustomer`s account on withdrawl..



    Posted by: hamed bamasdoos    

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    Debit Mean; When Withdrwel the bank (Debit) Credit Mean: When deposit the bank (Credit)



    Posted by: Gaurav    

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    Debit is come in business
    Credit is out in business.
    In ponit of bank



    Posted by: vishal ruhela    

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    Debit means depositing and credit means withdrawing...
    Or
    Debit means comes in and credit means comes out,,(bank point of view).



    Posted by: Mohmad vali    

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    Debit means depositing and credit means withdrawing...
    Or
    Debit means comes in and credit means comes out,,(bank point of view).



    Posted by: Mohmad vali    

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    If you are depositing in bank than bank will be debited and if you are withdraw from bank than bank will be credited.



    Posted by: Sanjeev Dubey    

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    bank point of view:
    deposits has to be repay & withdrawal reduces the liability of bank in each account.

    so banks debit withdrawals n credit deposits



    Posted by: mohamed ibrahim    

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    credit-Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services . Unlike money, credit itself cannot act as a unit of account.
    debit-A debit indicates an asset or an expense transaction.A debit transaction can also be used to reduce a credit balance or increase a debit balance. A credit transaction can be used to decrease a debit balance or increase a credit balance.



    Posted by: sagar     

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    Debit the receiver
    CREDIT the giver
    {If Bank is the receiver Bank account Debit
    If Bank is the giver Bank account credit}



    Posted by: saleem    

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    Quite opposit to general rule of debit and credit

    General rule is as follows
    Debit whats comes in
    Credit whats goes out



    Posted by: mohammed abdullah    

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    which amount debit in bank statement it means this amount is withdrawal & which amount is credit in bank statement it means this amount depoist in our bank, amount comes in our account
    then in tally from bank statement which amount is debit but in tally it will be credited & which amount is credit in tally it will be debit

    Mahima



    Posted by: mahima    

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    which amount is debit, it means withdrawal.
    which amount is credit, it means deposit.
    In tally software which amount is debit, there wil be credited.
    In tally which amount is credit, there will be debited.



    Posted by: mahima    

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    Dr. whats come
    and
    cr. whats goes out.



    Posted by: ajay    

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    The golden rule is
    Debt what comes in,
    Credit what goes out,

    From the banks point of you.....
    Credit what comes in,
    Debt What goes out.



    Posted by: Anilkumar    

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    Banks Point of view

    Debit balance shows that the company balance is negative & credit balance shows that company balance is positive.because in our books our assets shows debit and our liablity shows credit balance.
    so that's why from the banks point view credit balance is a liablity for bank that's why in the bank account our balance shows credit



    Posted by: Umesh Mishra    

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    WHEN WE DEPOSITED CASH/CHEQUE IN BANK THEN BANK BALANCE INCREASE WHEN THE BALANCE INCREASE ANYWAY WE SHALL DO BANK A/C DR. & WITHDRAWN CONDITION BY ANYWAY WE SHALL DO ALWAYS BANK A/C CR.



    Posted by: ABHINAV GARG    

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    Just one simple thing as per bank point of view.
    Person who's deposit in the bank, bank need to be treated them as their Liabilities.
    Person who's borrow from the bank, bank need to be treated them as their Assets.
    Example: Ram deposited into bank 10,000 Rs.
    In the Ram Books
    Bank A/c Dr. 10000
    To Cash A/c Cr. 10000

    In the Bank Books
    Cash A/c Dr. 10000
    To Ram A/c Cr. 10000

    For Personal A/c: Deposit by someone will be credited and borrow by someone is debited.


    For Cash A/c:Cash deposit by someone will be debited and cash borrow by someone is credited.



    Posted by: Mukesh    

    Contact Mukesh Contact Mukesh

    the three golden rules of accounting will apply to every organisation. generally there is no definition for debit and credit for accounting purposes. however we have one principle that is debit all expenses and losses and assets and credit all liabilities and incomes and gains. for banks also this will apply. that means if u deposit amount in bank that will be asset to u and a liability to bank.



    Posted by: anudeep voruganti    

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    Debit What Comes In (e.g cash deposit, Bank charges)
    Credit what Goes Out (Cash withdrawal by customer, Interst allowed by the bank)




    Posted by: PRIYA    

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    first the golden rule of debit & credit {Debit means what's come in & Credit What goes Out}
    But according to bank the system is reversed {Credit means What Comes in & Debit What goes Out}



    Posted by: Mohammed Jaffar Khan    

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    DEBIT MEANS EXPENDITURE AND CREDIT MEANS INCOME. IN THE OTHER WAY WE CAN CALL IT AS DEBIT FOR PAYMENTS AND CREDIT FOR RECEIPTS.
    WHEN EVER WE DEPOSIT IN THE BANK WE SHALL DEBIT BANK ACCOUNT AND CREDIT CUSTOMER ACCOUNT IN OUR BOOKS OF ACCOUNTS.SIMILARLY BANK WILL CREDIT TO OUR ACCOUNT.



    Posted by: Shyamprasad Venkata Madiraju    

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    DEBIT MEANS EXPENDITURE AND CREDIT MEANS INCOME. IN THE OTHER WAY WE CAN CALL IT AS DEBIT FOR PAYMENTS AND CREDIT FOR RECEIPTS.
    WHEN EVER WE DEPOSIT IN THE BANK WE SHALL DEBIT BANK ACCOUNT AND CREDIT CUSTOMER ACCOUNT IN OUR BOOKS OF ACCOUNTS.SIMILARLY BANK WILL CREDIT TO OUR ACCOUNT.



    Posted by: Shyamprasad Venkata Madiraju    

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    Debit what comes in
    Credit what goes out

    debit all expenses & Loss
    Credit all incomes & gains



    Posted by: manjappa    

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    there is a opposite reaction with bank,,like our debit is banks credit & our credit is banks debit..ex: i will deposit d money in bank that is debit for me n bank will credit d amt in my a/c.



    Posted by: himanshu    

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    Cash A/c & Bank a/c both are the real accounts,as per the principle of the real a/c is, whether Bank Point of View or your point of view it should be

    Dr what comes in,
    Cr what goes out.



    Posted by: Vijay Jadhav    

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    Cash A/c & Bank a/c both are the real accounts,as per the principle of the real a/c is, whether Bank Point of View or your point of view it should be

    Dr what comes in,
    Cr what goes out.



    Posted by: Vijay Jadhav    

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    debit and credit of banking company is entirely diffrent from that of business

    in business debit side of bank accounts means assets or deposit in bank so its asset to the company on the other hand bank point of view it is a liabilty and shown in the liabilty side of its balance sheet ie it has to repay to its customer as and when required or as per the terms of
    condition and in case of loan taken from the bank the business treat it as liabilty and bank trat it as asset and shown in asset side of the balancesheet .



    Posted by: sudheesh    

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    Debit refers to increase in the value of assets and expenses and dicrease in the value of liabilities and incomes.

    Credit refers to dicrease in the value of assets and expenses and increase in the value of liabilities and incomes.



    Posted by: MURARI KUMAR JHA    

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    Debit is the deposit by coustomers and credit is withdrawal or if u get u salary den also dat amount is credited to your accounts.



    Posted by: Monika Jha    

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    Debit from bank point of view is withdrawals and Credit is deposit...

    It applies the nominal princile i.e: Debit the receiver credit the giver



    Posted by: Geeta Tiwari    

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    As per the Bank point of view Debit means withdrawls of business and credits means deposits of the business.



    Posted by: abdull    

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    in bank point of view all deposit of business is shown in credit side & all withdrawal of business is shown in debit side that it.



    Posted by: rahul sinha    

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    In bank point of view
    Credit what comes in
    Debit what goes out



    Posted by: Sarbodaya Sahoo    

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    The Debit and the Credit form the Bank point is credit is incoming and
    debit is going out.
    If we have passbook with us we can see that as Dr or Cr.



    Posted by: Kanniappan.M    

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