[GNC] Credit/Debit vs Withdrwal/Deposit

[Stan Brown (using GC 2.6.19)]

That depends.

To you, your bank account is an asset. Debits increase assets and
credits reduce them, so a deposit is a debit and a withdrawal is a
credit -- to you.

To the bank, your account is a liability: money that they are holding
but do not own and must one day repay. Debits decrease liabilities and
credits increase them, so a withdrawal is a debit and a deposit is a
credit -- to the bank.

It's similar with credit-card accounts, by the way, except that the
situation is reversed: the account balance is a liability to you and an
asset to the bank. So a "credit", for instance when you make a payment
or return an item, is indeed a credit to the bank (because it reduces an
asset) but it's a debit to you (because it reduces a liability). A
"charge" or "debit" increases your account balance and therefore is a
debit to the bank but a credit to you.

Debits increase Assets and Expenses; credits reduce them.
Debits reduce liabilities, equity,and income; credits increase them.

I'm pretty sure there's a longer explanation in the Tutorial and
Concepts manual, but that's the short version.

Stan Brown
Tehachapi, CA, USA
https://BrownMath.com

On 2023-02-05 12:50, King Mak wrote:
> Good day,
> 
> How does one change the word Debit and Credit to Withdrawal and Deposit?
> 
> Thank you
>