September 29, 2008

have u ever thought why debit is DR and credit is CR?

well, nobody ever taught us about it.. all they tell us is
Debit is left side.. Credit is right side..
and you do the T account, you can write Debit/Credit
but also you can put DR/CR.. easier faster..
blah blah blah..
i remember i did ask about it..
in secondary school when i first came in contact with accounts
although i cant remember exact what reply i got
but i'm sure ms tan sek jiau smoke out of her way =D

well. thanks to the advancement of technology
we no longer need to go to the library to find encyclopedia
all we need is just one click
and "poof"! the answer appears.
of course, the reliability is one issue but thats not the point.

anyways, for the curious souls,
heres the explaination

The terms Debit and Credit have Latin roots.
Debit comes from debere, which means "to owe".
The Latin debitum means "debt".
Credit comes from the Latin word credere,
which means "to believe" or "to entrust".
It is more common to use the plural terms "Debits" and "Credits".

now, is it more sensible to believe that
DR = debere and CR = credere ?

-october blues!-

September 29, 2008

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