Debit and credit in plain words

3 quick questions. Pick an answer to see why.

1. In bookkeeping, what does "debit" mean?

Money leaving the business The left side of an entry An amount owed to BIR

Debit is the left column and credit the right. Whether a debit increases or decreases an account depends on the kind of account.

2. Kuting Kitchen records a ₱6,720 supplier invoice it will pay later. Which side does Accounts payable go on?

Credit, because a liability is going up Debit, because stock is coming in Neither until it's paid

Liabilities grow on the credit side. The stock (Inventory ₱6,000) and Input VAT (₱720) are the debits.

3. A payout entry shows ₱408.00 of debits and ₱480.00 of credits. What does that tell you?

Shopee underpaid by ₱72.00 It's fine; payouts never balance Something ₱72.00 is missing from the debits, here the Shopee fee

Every entry must balance. The ₱72.00 fee (₱64.29 expense + ₱7.71 input VAT) belongs on the debit side.