In double-entry accounting, what is the difference between debits and credits

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Business

Rudy Gill

27 October, 13:10

In double-entry accounting, what is the difference between debits and credits

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Jared Hicks · Answer 1

Debits and credits occur simultaneously in every financial transaction in double-entry bookkeeping. In the accounting equation-Assets = Liabilities + Equity-if an asset account increases (a debit), then either another asset account must decrease (a credit), or a liability or equity account must increase (a credit).