Debits And Credits Accounting

Posted by Ana Orwel on Monday, March 23, 2009

The basic concept that you need to understand before you actually start the accounting process is the debits and credits accounting. Most of the countries around the world follow the Golden Rule for accounting.

In this method all the accounts are divided into four broad categories which are nominal, real and personal account. In case of all these account there are different rules for debit and credit.

There is another method which is followed at the time of debiting and crediting accounts. This called the asset and liability and it is used extensively in the United States. In this method the accounts are debited and credited at the time there is an increase or decrease in the value of the assets or liabilities.

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