Know how your Bank account Debit and Credit works?
Consider a person named Ram who has an savings Account in Bank.
The two Personal accounts are involved in all transactions between them are Ram's A/c and Bank A/c
Suppose Ram's friend Laksman Send an amount of Rs.20000 to Ram's Bank account then he will got a message like,
" Your Account No. xxxxx is credited with Rs.20000"
You may got confused that as per Golden rules of Personal Accounts Receiver should be debited and Giver should be credited. Ram is the Receiver of Cash and Bank is giving the Cash. So Ram's A/c should be debited but in message it's showing Ram's account is credited! How???
Answer for this confusion is simple!
The message he got from Bank is with respect to Bank not with respect to Ram. When he got a message Rs.20000 is credited is actually Bank receiving the cash from him as his money is with the Bank as long as he withdraw from the Bank. So in actual fact Ram is the Giver of Cash and Bank is the Receiver of Cash. So Bank A/c is Debited and Ram's A/c is Credited and got a credit message!
Similarly for Debit messages also!
Suppose Ram withdraw a cash amount of Rs.10000 from Bank then he will got a message like,
" Your Account No. xxxx is debited with Rs.10000"
Here Bank is the Giver of Cash and Ram is the Receiver of Cash. So Bank A/c is Credited and Ram's A/c is Debited and he will got a debit message!
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