Atm what does dr mean

Your browser is configured to not accept cookies. Some features of the site are not available or will not work correctly without cookies. Also, some information presented might not apply to your situation. See How to enable cookies. Contrary to the belief that Debit means incoming and Credit means outgoing, they are just signals to indicate whether the accounting elements assets, expenses, liabilities, equity and revenue has increased or decreased. For e. If you buy an asset, there is an increase in assets so you communicate or signal it by debiting it.

Just as when we hold our index and middle finger in a V shape, it signals victory, similarly debiting assets and expenses signals an increase, and crediting liabilities,revenue and equity signals an increase in them.

I have sample answer , Debit means the one who take , Credit means the one who Give. Credits that is claimed by others and they owe in simple belongs to others and we have to return or pay or we have to bear and many more terms like these.

In this purchases the stock we bought belong to us so its debit and money against the stock is now belongings of others so we have to pay so it is credit entry. Debit and Credit are formal bookkeeping and accounting terms that have opposite meanings and come from Latin.

Debit comes from debere, which means "to owe". The Latin debitum means "debt". Credit comes from the Latin word credere, which means "to believe". A debit is also informally referred to as a "charge. Asset and expense accounts increase in value when debited and decrease when credited, whereas liability, equity, and revenue accounts decrease in value when debited and increase when credited. This distinction is somewhat counterintuitive, until the nature of those accounts is more closely scrutinized.

For example, revenue is coded as a credit. After recording a day's sales, the company will have credited a certain amount in revenue, and since credits are negative numbers, the balance grows more and more negative. An adjustment to revenue would need to be a debit, because its purpose is to bring the revenue totals closer to zero.

It is often assumed that a debit decreases a balance, and a credit increases it, because this is how the terms are used on bank statements and using a debit card decreases the balance in one's bank account. However, this is because bank statements are traditionally written from the bank's perspective, where the customer's account is a liability.

One theory asserts that the DR and CR come from the Latin past participles of debitum and creditum, which are debere and credere , respectively. Another theory is that DR stands for "debit record" and CR stands for "credit record. Research Journal of Finance and Accounting.

Accessed March 23, Accounting Historians Journal. Accessed Mar. Financial Analysis. Financial Statements. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance.