Credit.Cr!

Credit is a contractual agreement that the borrower has a foundation and agree to pay back to the lender with the interest at any time at a later date. Credit refers to accounting that reduces assets or increase debt and equity in the company's balance sheet. In addition, in the income statement, net income decrease, while credit increase net income.

The abbreviation of credit: The abbreviation is used for credit is "Dr".
Types of credit >>>

There are several kinds of the credit. If a bank provides a car loan, mortgages, loan signature, credit facilities to the customer, these are all credit forms. Essentially, the will credit the borrowers that the amount of the borrower will have to pay it later. For Example, when someone at a local shopping mall receive purchase of a VISA card, the payment is considered a kind of credit because it is necessary to purchase the items and pay it later.

However, these loan are not the only types of credit. If a supplier provides products or services to individual but does not pay the later, this a kind of credit. For example, if a restaurant received a truck from the the seller, but the seller does not demand payment until the one month later, the seller will provides credit form to the restaurant.

In accounting, credit is a subscription that includes the amount received. Custom credit are displayed on the left side of the debit card on the right. For Example, if a person search his expenses with an expenses report, he refer to deposit such as credit, and has deposited money on to amount as the debt.

In accounting,the credit balance is the final amount on the right side of the G/L account.

The credit amount is the normal and is expected in the general account and the following branch accounts.

Accountability account:These include accounts payable, trade notes, salary payment, interest expenses, accrued income taxes, customer deposit, deferred taxes, etc. For Example,  the credit balance of the payment account indicates the value of the supplier. ( Therefore, it show that the debt account balance is paid more than debt amount, bad account, etc). Since the liability account is permanent account, the balance will not be settled at the end of the year.

Equivalent account:Four example of stocks accounts are general account, monetary redemption principle, residual income and smith capital. These are the permanent accounts and the balance ends at the end of the fiscal year.

Accounts and revenue account: Example are income, income, interest income, equivalent acquisition and collection. Because of the provisional account, transferred to retained earning or owner's capital account is done at the end of the each accounting year.

Contribution account:Two example include reserve and cumulative amortization of suspicious accounts. The credit outstanding of these account recognize the aggregate and net of the account receivable and real estate, equipment and significant assets. As these are permanent accounts, the balance is not closed at the end of the posting period.

Cash payment account:This includes purchase, income, income on discount, employees expenditure, etc. The credit balance of these accounts allow a company to report both net assets and net worth. The balances of these interim accounts are transferred to the capital accounts of the owner's or owner at the end of the fiscal year.