Video narration
Does debit always mean money going out, and credit mean money coming in? Not quite. Debit and credit don't describe cash direction. The rule depends on the account type. In the traditional teaching convention, you use three rules. Personal accounts, meaning accounts for people or parties: debit the receiver and credit the giver. Real accounts, meaning accounts for things: debit what comes in and credit what goes out. Nominal accounts, meaning accounts for expenses, losses, income, and gains: debit expenses and losses; credit income and gains. Now, you buy a ₹100 snack with cash. The snack is an expense, so debit it. Cash goes out, so credit the cash account. One purchase, two accounts, and each follows its own type's rule. So, no: debit and credit don't simply mean cash out or cash in. Account type tells you which rule applies.