What does the term debit and credit mean in book keeping?

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1055638

2026-03-16 03:00

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In a financial transaction:

* debits = What was paid for or gained. It can be an expense, an asset (something of lasting value) or it can be a reduction in a debt. * credits = What is the source of value. It can be income, an increase in debt or obligations (owner investment) or it can be a reduction in assets (cash or other assets)

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