I. "Borrowing" and "Lending"
"Debit" and "loan" are accounting symbols. "Debit" means that capital occupation increases and capital sources decrease, while "loan" means that capital sources increase and capital occupation decreases. Accounting lending has no practical significance, just as a symbol of bookkeeping; Generally speaking, the "debit" is on the left side of the account; "Loan" is on the right side of the account.
Debit bookkeeping is a double entry bookkeeping method. It is a scientific double-entry bookkeeping method with "debit" and "loan" as bookkeeping symbols, the accounting equation of "assets = liabilities+owners' equity" as the theoretical basis, and the bookkeeping rule of "debit must have credit and debit must be equal".
Second, the difference between borrowing and lending.
Debit means the increase of assets, the beginning and ending balances of assets, the decrease of liabilities, the decrease of owners' equity, the increase of expenses and the decrease of income.
Lenders indicate the increase of liabilities, the opening and closing balances of liabilities, the increase of owners' equity, the decrease of assets, the decrease of expenses and the increase of income.
Third, the debit and credit bookkeeping method
Under the debit and credit bookkeeping method, the structure of all accounts is left-borrowing and right-lending, but the nature of lending reflecting the changes of accounting elements is not fixed. For accounts of different nature, the contents registered by the borrower and the borrower are different. The following explains the structures of various accounts.
(A) the structure of the asset account
In an asset account, the borrower records the increase of assets and the lender records the decrease of assets.
In the same accounting period (year, month), the total amount of debit records is called the current debit amount, and the total amount of credit records is called the current credit amount. At the end of each accounting period, the debit and credit amounts are compared, and the difference is called the ending balance. The ending balance of an asset account is generally on the debit side.
The ending balance of the asset account can be calculated according to the following formula:
Closing Balance (Debit) = Opening Balance x Debit Amount in Current Period-Credit Amount in Current Period
(2) Structure of liability account and owner's equity account.
The structure of liability and owner's equity account is just the opposite of that of asset account, and its lender records the increase of liability and owner's equity; Debit records the decrease of liabilities and owners' equity, and the ending balance should generally be in the credit.
The ending balance of the liability account and the owner's equity account can be calculated according to the following formula:
Closing balance (credit) = opening balance x current credit amount-current debit amount.