What are the Latin forms behind credit and debit?

The terms debit (DR) and credit (CR) have Latin roots: debit comes from the word debitum, meaning "what is due," and credit comes from creditum, meaning "something entrusted to another or a loan."23. An increase in liabilities or shareholders' equity is a credit to the account, notated as "CR."

1. What is the Latin word of credit?
2. What is the logic behind debit and credit?
3. What is the origin of the term debit?
4. What is the full form of DR and CR in accounting?

What is the Latin word of credit?

The term credit has its roots set in the latin word 'creditum' which means "that which is entrusted or loaned" which also came from 'credere' which means "to trust or entrust".

What is the logic behind debit and credit?

The debit is passed when an increase in assets or decrease in liabilities and owner's equity occurs. Credit is passed when there is a decrease in assets or an increase in liabilities and owner's equity.

What is the origin of the term debit?

Etymology. Borrowed from Middle French debet, from Latin debitum (“what is owed, a debt”), neuter of debitus, past participle of debere (“to owe”); Doublet of debt.

What is the full form of DR and CR in accounting?

This means that entries of equal and opposite amounts are made to the Finance System for each transaction. As a matter of accounting convention, these equal and opposite entries are referred to as a debit (Dr) entry and a credit (Cr) entry.