3 ms·
> Pratically, you have convention/tradition. You're making a choice to use plus/minus for credit/debit is one of the distinctions, you could just have easily us
by MarkMc 11y ago
> Pratically, you have convention/tradition. You're making a choice to use plus/minus for credit/debit is one of the distinctions, you could just have easily use it for asset/liability or income/expense. Why favor credit/debit?
The answer is that people intuitively understand what an asset, liability, income and expense is. People don't understand what a debit and credit is. If I deposit money in to my bank, should the 'bank account' in my accounting system be credited or debited? Most people would (incorrectly) say 'credited'.
- buyx 11y agoIt isn't that complicated. They key to unlocking double-entry accounting is the accounting equation and the (8?) or so rules mapping debits and credits to transactions. As for a bank deposit, it needs to be understood that the statement is produced from the bank's perspective. I don't think that the average person, given a few hours of learning, would struggle with this.