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Re:Double-Entry Bookkeeping as a Directed Graph by rahimnathwani on Wednesday April 10, 2024 @10:16AM (#39990983)

  Not really, the meaning of debit and credit depends on the type of account
That's how most accountants think about it. But I think there's something more fundamental: a CR entry is an increase is what the company owes (to creditors or shareholders), and a DR is an increase in what the company owns.

EDIT: see this link for how this relates to the accounting equation https://news.ycombinator.com/item?id=32501707

Re:Double-Entry Bookkeeping as a Directed Graph by t_mann on Wednesday April 10, 2024 @11:02AM (#39991477)
That's (somewhat) true for accounts that represent stocks (assets, liabilities, not really for equity though), it's not true for accounts that represent flows (income, expenses). Income is recorded as a credit entry in an income account, eg (the corresponding debit entry would typically be on something like a current account or claims on customers).
Re:Double-Entry Bookkeeping as a Directed Graph by rahimnathwani on Wednesday April 10, 2024 @11:30AM (#39991837)
Consider the positioning of income and expense accounts within the accounting equation. Essentially, they are components of equity. View equity as the company's obligation to its shareholders. A credit entry signifies an increase in what the company owes, whether to creditors or shareholders, while a debit entry reflects an increase in the company's assets.
Re:Double-Entry Bookkeeping as a Directed Graph by jfengel on Wednesday April 10, 2024 @10:28AM (#39991091)
Isn't that exactly backwards to what most people think of credits and debits? If you credit me something, I now have something. I don't owe anything.

I can kinda squint and see "Oh, you want the universe to balance, so if I have something it is some kind of karmic debt". But it still feels like exactly the opposite of what I grew up thinking of these terms to mean.

Re:Double-Entry Bookkeeping as a Directed Graph by rahimnathwani on Wednesday April 10, 2024 @10:46AM (#39991284)
It's the opposite because when a counterparty (like a bank or a store) says they're 'crediting your account', they're talking about the impact from their perspective, not your perspective.