Difference between revisions of "Credit"

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(Related coursework)
 
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*[[Bookkeeping]]. Recording, filing, and retrieving of [[financial data]], as well as producing those [[financial report]]s that are required by laws.
 
*[[Bookkeeping]]. Recording, filing, and retrieving of [[financial data]], as well as producing those [[financial report]]s that are required by laws.
  
==Related coursework==
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==Related lectures==
 
*[[Bookkeeping Quarter]].  
 
*[[Bookkeeping Quarter]].  
  
 
[[Category: Septem Artes Administrativi]][[Category: Articles]]
 
[[Category: Septem Artes Administrativi]][[Category: Articles]]

Latest revision as of 19:32, 4 January 2019

Credit (alternatively known as credit entry and commonly abbreviated Cr because of Latin credere) is any entry into financial books that either increases equity-origin accounts or decreases asset-origin accounts. Any journal entry contains at least one credit.

In a T-account, a debit balance is found on the right-hand side. In addition, credit could also refer to (a) an account receivable when an organization allows a customer to delay the payment or (b) an account payable when an organization owes funds to a supplier or, often a bank, referring to a credit made by another organization.

Credit could finally refer to money that is owed on a credit card. When you want to open an account with a supplier you may be asked to fill in what is called a credit application. A number entered on the right side of any T-account is said to be credited to this account.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Credit. The right-hand side of any account. A number entered on the right side of any account is said to be credited to an account.

Related concepts

Related lectures